Devoured - April 28, 2026
OpenAI Misses Key Revenue, User Targets in High-Stakes Sprint Toward IPO (6 minute read)

OpenAI Misses Key Revenue, User Targets in High-Stakes Sprint Toward IPO (6 minute read)

AI startupinfrastructure Read original

OpenAI missed key revenue and user growth targets, raising concerns about whether it can afford its $600 billion in data center commitments ahead of a planned IPO.

What: OpenAI failed to hit internal targets including 1 billion weekly ChatGPT users by end of 2025 and multiple revenue goals, while having committed to approximately $600 billion in future data center spending contracts. CFO Sarah Friar has expressed concern that revenue may not grow fast enough to cover future computing costs, creating tension with CEO Sam Altman over continued aggressive spending.
Why it matters: This represents the first major growth slowdown for the company that catalyzed the AI boom, with broader implications for the tech sector. The news caused immediate market declines for OpenAI partners including Nvidia, Oracle, and SoftBank, which committed over $60 billion to the company. The mismatch between OpenAI's massive infrastructure commitments and slower-than-expected growth could signal that AI adoption is hitting practical constraints faster than the industry anticipated.
Takeaway: If you're building on OpenAI's platform or investing in AI infrastructure, monitor for potential pricing changes or service constraints as the company faces pressure to balance growth with spending commitments.
Deep dive
  • OpenAI missed its goal of reaching 1 billion weekly active ChatGPT users by end of 2025 and hasn't yet announced hitting that milestone, which has unnerved investors
  • The company also missed its yearly ChatGPT revenue target after Google's Gemini saw massive growth and took market share in late 2025
  • OpenAI lost ground to Anthropic in coding and enterprise markets, missing multiple monthly revenue targets in early 2026
  • The company faces subscriber defection problems, with users churning at concerning rates according to people familiar with the figures
  • Despite raising $122 billion in the largest Silicon Valley funding round ever, OpenAI expects to burn through that amount in three years if it meets ambitious revenue targets
  • CEO Sam Altman committed OpenAI to roughly $600 billion in future data center spending based on assumptions of continued rapid growth
  • CFO Sarah Friar has warned other leaders the company might not be able to pay for future computing contracts if revenue doesn't accelerate
  • Board directors have begun questioning Altman's push for even more computing power despite the business slowdown, creating internal tension
  • Friar has also expressed reservations about the planned IPO timeline (by end of 2026), saying OpenAI isn't ready for public company reporting standards
  • The company is cutting costs by shutting down projects like its video-generation app Sora while its coding tool Codex continues growing
  • OpenAI recently released GPT-5.5 which topped industry benchmarks, but capacity crunches have led to price increases and rationing that frustrate power users
  • The company faces additional challenges including second-in-command Fidji Simo on unexpected medical leave and an ongoing Elon Musk lawsuit seeking to oust Altman
  • Market reaction was swift: Nasdaq fell over 1%, with declines in Nvidia and Oracle, while SoftBank dropped 9.9% in Tokyo trading
Decoder
  • IPO (Initial Public Offering): When a private company first sells shares to public investors on a stock exchange
  • Weekly active users: The number of unique users who interact with a product at least once during a seven-day period, a key growth metric for consumer apps
  • Compute/computing power: Processing capacity from data centers and GPUs needed to train and run AI models, the primary cost driver for AI companies
  • Enterprise market: Business customers who pay for corporate software licenses, typically more stable and lucrative than consumer subscriptions
Original article

OpenAI missed its own targets for new users and revenue, raising concern among company leaders about whether it will be able to support its massive spending on data centers. The company's Chief Financial Officer has said that she is worried that OpenAI may not be able to pay for future computing contracts if revenue doesn't grow fast enough. Board directors have been questioning CEO Sam Altman's efforts to secure even more computing power despite the business slowdown. Company executives are now seeking to control costs and instill more discipline in the business.