Report: OpenAI misses revenue and user targets as spending concerns grow

OpenAI has missed several internal targets for revenue and new users, raising questions inside the company about how it will fund its enormous spending on data centers. The Wall Street Journal reported that Chief Financial Officer Sarah Friar has warned other company leaders that OpenAI may not be able to cover future computing contracts if revenue does not grow fast enough.

According to the Journal, OpenAI failed to reach an internal goal of one billion weekly active users for ChatGPT by the end of last year. It also missed its yearly revenue target for ChatGPT after Google’s Gemini gained significant market share late last year. Earlier this year, OpenAI missed multiple monthly revenue targets, losing ground to Anthropic in the coding and enterprise markets. The company has also struggled with subscriber cancellations.

OpenAI’s board has responded by examining data center deals more closely and questioning CEO Sam Altman’s push to secure even more computing capacity. Friar and other executives are working to control costs and impose greater financial discipline, the Journal reported.

OpenAI and Altman pushed back firmly against this characterization. In a joint statement, Altman and Friar said they are “totally aligned on buying as much compute as we can.” The company called any suggestion of a rift between the two “ridiculous” and described its business as “firing on all cylinders.” OpenAI also labeled the Journal’s report “prime clickbait.”

The dispute reflects a deeper tension. For years, Altman pursued an aggressive strategy of locking up as much data center capacity as possible, arguing that computing shortages were the main obstacle to growth. That approach led to spending commitments of around $600 billion. It had the backing of Friar and the board while ChatGPT was growing rapidly.

OpenAI recently raised $122 billion in funding, its largest round ever. However, the company expects to spend through that amount within three years, assuming it meets ambitious revenue targets. Some of that funding is also conditional on specific partner agreements.

The business challenges come at a difficult moment. OpenAI is preparing for a possible initial public offering. Friar has cautioned that the company is not yet ready to meet the reporting standards required of a public company, while Altman has reportedly favored a faster timeline. The company is also dealing with a leadership gap after its second-in-command took unexpected medical leave.

Despite the difficulties, OpenAI pointed to areas of growth. Its coding tool Codex is gaining users, and the company recently released a new model, GPT-5.5, which it says topped several industry benchmarks. OpenAI also told investors it has secured more computing capacity than rival Anthropic, which it describes as a competitive advantage.

Shares of several OpenAI partners, including SoftBank, Oracle, and CoreWeave, fell following the Journal’s report.

Sources: The Wall Street Journal, Bloomberg