OpenAI remains one of the most valuable private companies in the world, even after burning through $3.7 billion in the first three months of 2026 against $5.7 billion in revenue. The numbers come from a fresh report by The Information, which cited documents OpenAI shared with shareholders and showed where the money went.
OpenAI's last funding round, which closed in March, set the price tag at roughly $852 billion, even as those losses pile up. Most startups never get close to either number - the valuation or the burn - and OpenAI is hitting both at the same time.
The bulk of OpenAI's Q1 burn came from running ChatGPT, with chips, power, and data center rent making up most of the bill. Every question a user types costs OpenAI money to answer, which means the more popular the product gets, the higher the bill climbs.
Salaries and research costs took another big slice, with R&D alone reportedly hitting $8.6 billion in the quarter as OpenAI keeps poaching top AI researchers from rivals like Google and Anthropic. Pay packages for senior staff have crossed eight figures, pushing payroll costs to levels Silicon Valley rarely sees outside of public tech giants. [NEEDS MANUAL VERIFICATION on eight-figure pay package claim]
That spending sits on top of long-term cloud and chip deals OpenAI signed with Microsoft, Oracle, and Nvidia, which lock in costs whether sales keep up or not.
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OpenAI keeps raising money at record prices, with a line of investors waiting to put more in. The company finished Q1 with more than $73 billion in cash and marketable securities, up from about $40 billion at the end of December - mostly thanks to the March funding round. The bet is that whoever wins the AI race gets to set prices later, and most of Silicon Valley still thinks OpenAI is the company in front.
That logic mirrors the early Amazon playbook, which posted years of losses before turning into one of the most profitable businesses on earth. Microsoft has bought into the same bet, providing cloud space and cash in exchange for a piece of whatever OpenAI builds next.
Anthropic, Google, and Meta are all spending heavily on their own AI models, which means OpenAI can't ease off the gas without losing ground. Anthropic alone has raised more than $100 billion in the past year across its Series F, G, and H rounds - most recently $65 billion at a $965 billion valuation in May - with much of that money flowing into the same chips and data centers OpenAI relies on.
Beyond the model labs, the cloud giants are spending too, with Amazon and Google both building rival cloud-and-model bundles to chip away at OpenAI's lead. The result is an arms race where every player is losing money on purpose, hoping to be the last one standing when the bill finally comes due.
The number to focus on isn't the burn rate - it's revenue growth. Revenue tripled year over year in Q1, and if OpenAI's sales keep doubling, the losses start to look like an investment rather than a problem.
If growth slows while costs keep climbing, the story around the company shifts fast. OpenAI has told investors it doesn't expect to be cash-flow positive until around 2030, so for now, the checks keep clearing.
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