OpenAI, the company behind ChatGPT, saw its quarterly revenue surge by roughly 50% to $10 billion in the third quarter, according to documents reviewed by The Wall Street Journal. Yet the group's operating losses widened to $10.9 billion (€9.72bn), up from $10.1 billion (€9.01bn) in the previous quarter, underscoring the heavy costs of building and running advanced AI systems.
The figures, shared with investors, show an adjusted operating margin that improved to -109% from -150% — still deeply negative but moving in the right direction. The disclosure comes as investors scrutinise the finances of AI companies more closely, with rival Anthropic preparing for a stock market debut that could value it at around $1.4 trillion (€1.25trn).
Anthropic's IPO: a test for the AI boom
Anthropic, maker of the Claude AI models, filed with the US Securities and Exchange Commission to sell 825 million shares at between $70 and $78 each (€62.44–€69.58), under the ticker "ANT." The listing would be the first by a leading AI model developer and is seen as a gauge of how long the AI spending boom can last.
Seven tech companies, including Google, Nvidia, AMD, and Microsoft, have agreed to buy $26 billion (€23.2bn) of non-voting shares at the IPO price in a separate private placement. These firms are either investors in Anthropic or major suppliers of its computing power.
Anthropic had been expected to raise up to $100 billion (€89.2bn), which would have made it the largest IPO on record. The listing is "just another chapter" in investors' worries over the cost of the AI buildout and how it gets financed, Art Hogan, chief market strategist at B. Riley Wealth Management, told AFP.
"But at the end of the day, I think there are three massive companies that investors have wanted to be part of for the last three years and that’s SpaceX for sure, Anthropic is next, and perhaps next year OpenAI," he added.
The IPO comes as Wall Street digests the results of the US midterm elections, in which Democrats, who are more wary of AI, won control of both chambers of Congress and have vowed to put the brakes on President Donald Trump's agenda. That political shift has already brought volatility to shares of companies linked to the AI boom, with AI chip-maker Nvidia particularly in focus after chief executive Jensen Huang was caught up in a spy scandal.
For European observers, the financial strain at OpenAI and the upcoming Anthropic listing raise questions about the sustainability of the AI investment wave. European companies and policymakers are watching closely, as the continent seeks to build its own AI capabilities while managing the risks of dependence on US tech giants. The persistence of the AI boom is a key factor for European tech investors and regulators alike.
Meanwhile, the broader economic implications are significant. The AI buildout has been a major driver of US growth, but its costs are mounting. European chipmakers like Infineon have seen AI data centre demand continue, even as political headwinds emerge. The outcome of Anthropic's IPO could set a precedent for how AI companies are valued and financed, with ripple effects across the Atlantic.
As the US midterm results shift the political landscape, the AI sector faces new regulatory scrutiny. Democrats have signalled they will push for stricter oversight, which could affect the pace of AI development and the profitability of companies like OpenAI and Anthropic. For Europe, which is crafting its own AI rules under the EU AI Act, these developments offer both cautionary tales and opportunities for leadership.
