OpenAI's compute margin said to jump to 70%
OpenAI's compute margin, the share of revenue excluding the costs of running its AI models for paying users, has surged to 70% in October, up from 52% at the end of 2024.
Why it matters
The increase in OpenAI's compute margin is a positive sign for the company's financial health and ability to scale its AI technology effectively.
Key Points
- 1OpenAI's compute margin reached 70% in October 2025
- 2This is an 18-point increase from the end of 2024
- 3The compute margin measures the share of revenue after the costs of running AI models for paid users
Details
OpenAI, the prominent AI research company, has seen a significant improvement in its compute margin, which is an internal metric that measures the share of revenue after the costs of running AI models for paying users. According to a report by The Information, OpenAI's compute margin surged around 18 points from the end of last year to reach 70% in October 2025. This is a notable increase, as the compute margin was only 52% at the end of 2024 and had doubled from the rate in January 2024. The improved compute margin suggests that OpenAI has been able to optimize the costs of running its AI models, potentially leading to better profitability and sustainability for the company's business model.
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