Stock Markets April 27, 2026 10:31 PM

OpenAI Fell Short of Internal User and Revenue Targets, Prompting Cost Scrutiny Ahead of IPO

Missed goals for weekly users and monthly revenue raise questions about funding large-scale data center commitments and spur tighter financial controls

By Hana Yamamoto MSFT
OpenAI Fell Short of Internal User and Revenue Targets, Prompting Cost Scrutiny Ahead of IPO
MSFT

OpenAI failed to meet internal targets for new users and revenue, including a goal of reaching one billion weekly active ChatGPT users by the end of 2025 and several monthly revenue benchmarks earlier this year. The shortfalls have triggered concern among company leaders about the ability to fund expansive data center commitments and led executives to pursue tighter cost controls as the startup prepares for an expected initial public offering by year-end.

Key Points

  • OpenAI missed an internal target to reach one billion weekly active ChatGPT users by the end of 2025 and failed to hit several monthly revenue targets earlier this year.
  • CFO Sarah Friar warned other company leaders that the firm might be unable to afford future data center contracts if revenue does not grow fast enough; executives are pursuing tighter cost controls.
  • OpenAI has committed to roughly $600 billion in data center spending and faces heightened competition from rivals such as Anthropic and Google, even as its board examines recent capacity deals and management's push for more computing power.

Overview

OpenAI has not hit internal expectations for both user growth and revenue, according to reporting that cites people familiar with the matter. The company missed an internal target to reach one billion weekly active users for its ChatGPT bot by the end of 2025, and it failed to meet multiple monthly revenue goals earlier in the year.


Executive concerns and internal responses

Chief Financial Officer Sarah Friar has raised alarms within the company about the financial implications of these shortfalls. She told other leaders she feared the firm may struggle to pay for future data center contracts if revenue does not accelerate sufficiently. In response to the revenue and user gaps, Friar and other executives are moving to tighten cost controls and to instill stronger business discipline across the organization.


Board scrutiny and strategic tension

Board members have also scrutinized OpenAI's recent data center agreements and questioned management decisions around further capacity commitments. Directors have pressed company leadership about CEO Sam Altman's push to secure additional computing power even as revenue indicators have softened.


Capital commitments and competitive backdrop

Over the past year, OpenAI struck a string of major deals that include commitments to spend some $600 billion on building data centers in the coming years. Those large-scale capacity plans coincide with rising competition from rivals such as Anthropic and Google, whose advanced AI models were reported to be matching or in some cases surpassing OpenAI in performance.


Timing and market context

The concerns about revenue growth and the pace of spending come as OpenAI presses toward an initial public offering, which is expected to occur by the end of the year. The combination of missed internal targets, questions about the affordability of future data center contracts, and board-level scrutiny has prompted a management shift toward cost discipline ahead of the planned public listing.


What is known and what remains limited

The details reported focus on internal targets, executive discussions, board questions, capital commitments, and competitor performance. Where specifics are limited in the reporting, the account notes the existence of concerns and measures taken rather than providing additional undisclosed financial metrics or future outcomes.

Risks

  • Funding risk for large-scale data center contracts if revenue growth remains insufficient - impacts cloud infrastructure providers, data center suppliers, and capital markets exposed to the tech sector.
  • Governance and strategic execution risk as board scrutiny increases around rapid capacity expansion - impacts investor confidence and could affect IPO timing or valuation in public markets.
  • Competitive risk from peers whose AI models are reported to match or surpass OpenAI's performance - impacts market share and future monetization prospects for AI products and services.

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