OpenAI posted revenue of $10 billion in the third quarter, up nearly 50 percent from the previous quarter, but its large operating losses continued, the Wall Street Journal reported on Monday.

Documents reviewed by the WSJ showed the adjusted operating margin improved to minus 109 percent in the third quarter from minus 150 percent in the second. The adjusted operating loss increased slightly to $10.9 billion from $10.1 billion.

The figures exclude stock-based compensation. Citing a source familiar with the matter, the WSJ reported stock-based compensation was $2.6 billion in the third quarter.

In the third quarter of last year, OpenAI posted revenue of $3.9 billion and an operating margin of minus 97 percent.

Rival Anthropic, which is preparing for an initial public offering, recently disclosed third-quarter revenue of $17 billion and an operating loss of $567 million. The operating loss includes stock-based compensation.

Anthropic’s revenue surpassed OpenAI’s early this year on the popularity of its coding tool Claude Code, and it also posted a small operating profit in the second quarter.

OpenAI cut prices for its latest models to catch up with Anthropic in the enterprise market. The company said the share of total revenue coming from its enterprise segment is steadily rising.

Paid ChatGPT users rose to about 100 million. That equals 8.5 percent of weekly active users, a slight increase from the previous quarter.

Citing external data, the WSJ reported OpenAI narrowed the gap with Anthropic in the third quarter as some companies sought alternatives that are more cost-effective than Claude.