OpenAI’s Compute margins surge again

 📈 OpenAI’s Compute margins surge again

OpenAI’s compute margin on paying users reportedly hit ~70% in October (up from ~52% at end-2024 and ~35% in Jan 2024), driven by cheaper rented compute, inference efficiency tweaks, and a higher-priced subscription tier.

- OpenAI’s compute margin for paying users jumped to 70% in October

- Company had declared a ‘Code Red’ to focus on server costs after release of new model from DeepSeek

- For total computing costs, Anthropic is expected to be more efficient