👀OpenAI Q1 operating margin was -122% even when excluding SBC and other items.

OpenAI reported a negative 122% operating margin in Q1, indicating the company spent significantly more on operations than it generated in revenue, even after excluding stock-based compensation and other non-cash items. This substantial operating loss suggests the company is not yet profitable despite its market prominence and ongoing revenue growth. The metric highlights the high computational and operational costs required to develop and maintain large language models at scale.

Source: Gary Marcus (X) | 2026-05-21