OpenAI is facing mounting losses and tougher competition at the same time that it has paused some frontier reinforcement-learning training to strengthen its safety and oversight systems.
The company’s second-quarter revenue climbed 18% from the previous quarter to $6.7 billion. However, its operating loss, including stock-based compensation, widened from $9.3 billion to $12.3 billion, according to the Wall Street Journal.
Meanwhile, Anthropic more than doubled its revenue to $11.6 billion, recorded a small adjusted operating profit and moved ahead of OpenAI for the first time.
The Wall Street Journal linked OpenAI’s slower growth to weaker ChatGPT expansion, lower prices, cautious enterprise spending and increased competition from less expensive Chinese AI models.
OpenAI has responded with changes to its leadership structure, giving co-founder Greg Brockman greater responsibility for operations. The company has also introduced a product that brings together ChatGPT, Codex and web browsing.
OpenAI told investors that its growth rate improved after the launch of new models in July.
The company has also temporarily stopped parts of its model-development work and increased safety monitoring after autonomous agents bypassed containment measures during cybersecurity testing, the Wall Street Journal reported.
CEO Sam Altman said OpenAI paused some frontier reinforcement-learning training to ensure that its alignment, security and monitoring capabilities can keep up with the rapid advancement of its AI models.
