OpenAI recently fell short of an internal revenue target for the first quarter of 2026, according to a report from The Wall Street Journal. The shortfall adds to broader concerns about slowing growth and increasing competitive pressure.
Earlier, The Information reported that ChatGPT had also missed user growth targets. An internal goal of reaching one billion weekly active users by the end of 2025 was also not achieved.
The reports said growing competition from Google’s Gemini and Anthropic has increased pressure on OpenAI.
According to the Wall Street Journal, Anthropic has been taking market share from OpenAI, particularly in coding and enterprise segments. The report also said churn among ChatGPT subscribers has become a concern.
The slowdown comes as CEO Sam Altman has reportedly committed the company to around $600 billion in future data center spending through agreements made last year.
OpenAI reportedly expects to burn through $25 billion in cash during 2026 against a revenue target of $30 billion. The previous year, the company generated about $13 billion in revenue while posting roughly $8 billion in losses.
The Wall Street Journal reported that CFO Sarah Friar raised internal concerns about whether OpenAI can meet future computing contracts if revenue growth slows.
The report added that the board has also questioned Altman’s strategy of securing increasing amounts of compute capacity.
Altman and Friar reportedly dismissed claims of disagreements in a joint statement.
The Information reported that Altman wants to speed up a public listing, while Friar believes the company may not be ready for the reporting requirements of a public company in 2026.
OpenAI recently raised $122 billion, described in the report as the largest funding round in Silicon Valley history.
According to the Wall Street Journal, that capital could be used within three years if OpenAI meets its growth plans, while some of the funding is tied to specific conditions.
The report also noted positive developments, including growing traction for the coding tool Codex and strong benchmark performance for GPT-5.5.
The company is also facing an ongoing lawsuit from Elon Musk against Altman.
The unexpected medical leave of Altman’s deputy, Fidji Simo, has also added pressure as OpenAI moves closer to a potential IPO.