OpenAI told investors its operating losses widened to $10.9 billion (£8.2bn) in the third quarter from $10.1bn the previous quarter, reported, underscoring the complex economics of the AI industry.

The increased losses came even as OpenAI’s quarterly revenue grew about 50 percent during the quarter, reaching $10bn, the report said, citing documents.

Improved operating margin

The start-up reportedly told investors that its adjusted operating margin improved to -109 percent from -150 percent the previous quarter.

The figures come as competitor Anthropic prepares for an IPO that’s expected next week and is believed will value the firm at around $1.4tn.

In an updated pre-IPO S-1 filing this week Anthropic said its expenses soared even faster than its quickly growing revenue.

In the filing, Anthropic said its annualised revenue run-rate reached $81bn in October, up $10bn from the previous month.

It reported $16.2bn in revenues for the six months to the end of June, up from $1.1bn in the same period a year earlier, but during the same period its pre-tax loss jumped to $80.7bn from $12.9bn.