OpenAI generated $5.7bn in Q1 2026 revenue but posted an adjusted operating margin of -122%, meaning it lost $1.22 for every dollar earned — roughly $6.95bn in losses for the quarter. On track for $30bn in 2026 revenue, the company would lose over $36.6bn at current margins. ChatGPT weekly active users stalled at an average of 905m, well short of the 1 billion target, with a free-to-paid conversion rate of only ~6%. The author contextualizes these figures against Anthropic's competing financial disclosures, suggesting both companies are engaged in financial messaging wars ahead of OpenAI's rumored IPO filing, while questioning whether the core economics of generative AI have fundamentally improved.
Table of contents
Executive Summary:ChatGPT’s Growth Has StalledWhy Is Everybody Talking About Operating Margins?Sort: