OpenAI (PC:OPAIQ) is generating higher profit from its paying users. The company reached a 70% compute margin in October 2025. That’s up from 52% at the end of 2024 and 35% in January 2024, according to The Information.
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This margin reflects how much revenue is left after OpenAI pays to run its AI models for subscribers. The jump shows the company is doing a better job handling large-scale use, especially from business users.
OpenAI now serves over 1 million business accounts and reaches 800 million people each week. As its reach grows, OpenAI is becoming more efficient at turning usage into earnings.
SoftBank Races to Deliver Final Payment
While OpenAI improves its margins, SoftBank (SFTBY) Group is working to complete its $30 billion funding deal. The firm still owes $22.5 billion. To raise cash, it sold its full $5.8 billion stake in Nvidia (NVDA) and offloaded $4.8 billion in T-Mobile US (TMUS) shares.
SoftBank first struck the deal in April when OpenAI was valued at $300 billion. Since then, OpenAI’s worth has jumped. It is now in talks to raise up to $100 billion more at a value between $750 billion and $830 billion. Some reports say the number could even go near $900 billion.
The remaining SoftBank investment was tied to OpenAI switching to a for-profit model. That shift happened in October. Since then, OpenAI has been meeting with new backers, including Amazon (AMZN), as it looks to raise more capital.
Competition Heats Up, Revenue Keeps Rising
OpenAI still faces pressure from rivals. In early December, CEO Sam Altman issued a “code red” inside the company. This came after Alphabet’s (GOOGL) Google released Gemini 3, which outscored OpenAI’s models on several tests.
As a result, OpenAI shifted focus toward making ChatGPT better, faster, and more stable. That meant slowing down other projects, including ads and new AI tools.
Soon after, OpenAI launched GPT-5.2 in mid-December. The company says this upgrade puts it back on top in key benchmarks. Even with the challenge from Google, OpenAI’s usage numbers keep climbing. ChatGPT message volume rose 8x over the past year, and API token usage is up 320x.
Spending Grows as OpenAI Eyes Long-Term Lead
Despite stronger margins and more revenue, OpenAI is not yet turning a profit. The company expects to bring in $20 billion in annualized revenue by the end of 2025, up from $4 billion in 2024. But it still plans to burn $8 billion in cash this year.
That’s because OpenAI is spending big on hardware and infrastructure. Over the next eight years, it has committed to spending $1.4 trillion to stay ahead in the AI race.
We used TipRanks’ Comparison Tool to align notable traded companies that employ chatbots similar to ChatGPT and Gemini. It’s an excellent tool to gain a broader perspective on each stock and the AI industry as a whole.
