OpenAI Improves Compute Margins to 70% Amid Push for Profitability

OpenAI has improved its compute margin to 70% as of October 2025, up from 52% at the end of 2024 and double the rate recorded in January of that year. The compute margin measures the share of revenue remaining after the costs of running models for paying users across the company’s consumer and enterprise products.

The company has yet to post a profit despite its strong position in the artificial intelligence market. It was last valued at around $500 billion in October and continues to explore ways to offset high infrastructure and computing costs. Most users still rely on the free version of ChatGPT, though OpenAI is promoting its paid and enterprise offerings in sectors such as financial services and education.

OpenAI has reportedly achieved stronger compute margins than rival Anthropic for its paid accounts, though Anthropic maintains greater efficiency in server spending. The company is also in early discussions to raise at least $10 billion from Amazon and use its chips, in a deal that could push its valuation above $500 billion.

Competition remains intense. Following benchmark results showing Google’s Gemini model outperforming ChatGPT, CEO Sam Altman reportedly redirected internal resources to accelerate improvements to OpenAI’s flagship product and postponed plans for an advertising initiative.