Stocks of companies tied to the artificial intelligence (A.I.) buildout fell on Oct. 8 after OpenAI announced a revised revenue figure that fell short of Wall Street’s expectations.
Shares of Nvidia (NVDA), Oracle (ORCL), CoreWeave (CRWV), and others, fell after the market learned more details about OpenAI’s sales.
The A.I. startup company told investors that it had roughly $50 billion U.S. in annualized revenue at the end of September.
That figure is lower than the $68 billion U.S. that was reported by the company last month, startling investors and analysts.
OpenAI said that the $68 billion U.S. figure included gross revenue from its partners, which helps investors make a more direct comparison with its main rival, A.I. startup Anthropic.
The lower revenue figure was reported as OpenAI prepares to hold an initial public offering (IPO) in 2027 that is expected to be one of the biggest in Wall Street’s history.
In addition to the $50 billion U.S. in annualized revenue, OpenAI announced 77% total run rate growth during its third quarter, as well as 107% run rate growth for its enterprise business.
There are concerns that OpenAI’s business is not growing as briskly as had been anticipated and that the entire A.I. trade is on shaky ground.
Nvidia shares fell 3%, Oracle shares dropped 6%, and CoreWeave’s stock tumbled 8% following OpenAI’s new revenue disclosure.
Other A.I.-related stocks such as Advanced Micro Devices (AMD) and Broadcom (AVGO) declined 4% on the day.
OpenAI is expected to seek a valuation of more than $1 trillion in its upcoming IPO. A date for its market debut has not been set.
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