OpenAI has failed to meet its internal revenue and user growth targets, according to a Wall Street Journal report citing people familiar with the matter. The artificial intelligence company's performance shortfall comes as it continues preparations for a potential initial public offering.

The ChatGPT maker had set ambitious internal goals for both revenue generation and user acquisition, but has struggled to reach those benchmarks despite the widespread attention its AI chatbot has received since its public launch.

The missed targets represent a significant challenge for OpenAI as it seeks to demonstrate sustained growth and profitability to potential investors ahead of a possible IPO. The company has been valued at over $80 billion in private funding rounds, making investor expectations particularly high.

OpenAI's revenue comes primarily from its ChatGPT Plus subscription service and API access for developers and businesses. The company has been working to expand its enterprise offerings and develop new revenue streams beyond its consumer chatbot product.

The timing of the shortfall is particularly notable given the intense competition in the AI sector, with major technology companies like Google, Microsoft, and Meta all investing heavily in similar technologies and racing to capture market share in the rapidly evolving artificial intelligence landscape.