Microsoft Corp (NASDAQ:MSFT) partner OpenAI is merging ChatGPT, its Codex coding platform, and the Atlas browser into a single desktop “superapp,”.

The move comes as executives internally describe the company as operating under a “code red.”

OpenAI hit roughly $25 billion in annualized revenue as of February but is projecting $14 billion in losses this year and doesn’t expect to turn cash-flow positive until 2030.

OpenAI’s ‘Side Quest’ Problem

Fidji Simo, OpenAI’s chief of applications, told employees the company had been “spreading our efforts across too many apps.”

The Atlas AI browser launched in October 2025 to lukewarm reception. MIT Technology Review called it “cynicism masquerading as software.” The Sora video generator and a hardware device followed. None generated consumer enthusiasm.

Simo told an all-hands meeting last week they couldn’t afford “side quests” given Anthropic’s rapid success winning enterprise and coding customers. Sam Altman, Mark Chen, and Simo have spent recent weeks reviewing OpenAI’s product portfolio for areas to cut.

The Enterprise Gap

Anthropic, one of OpenAI’s main rivals, has seen its annualized revenue climb to around $19 billion by early 2026, according to Sacra estimates, closing the gap on OpenAI’s $25 billion.

On the enterprise side, the shift is even starker. OpenAI’s share of enterprise AI spending fell from 50% to 27% over the past year while Anthropic’s climbed to 40%, per Quartz.

The WSJ report noted OpenAI “renewed its efforts” after seeing the “breakout success” of Anthropic’s Claude Code and Cowork products.

OpenAI acquired Python toolmaker Astral the same day, pushing Codex past 2 million weekly active users. But Codex is playing catch-up.

Claude Code’s 30-day average daily installs in VS Code nearly doubled since January, surging from 17.7 million to 29 million, according to Uncover Alpha.

What Prediction Markets Say

The picture for an IPO isn’t encouraging. OpenAI is losing enterprise market share to Anthropic and its consumer product launches have largely failed to gain traction. That’s a tough pitch to public market investors, especially in a year where SpaceX and Anthropic may be competing for the same capital.

On Polymarket, the contract tracking whether OpenAI will IPO by December 31, 2026 has fallen from around 55% in early February to roughly 35% today.

A separate contract on the largest IPO by market cap this year has SpaceX at 86% and OpenAI at just 6%.

Polymarket’s “best AI model” contract for June prices Anthropic at 59% and OpenAI in third at 11%.

Both companies are reportedly considering public listings by late 2026. Bettors aren’t holding their breath for OpenAI.

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