Oracle and several AI-linked chip stocks fell after a report said OpenAI missed internal user growth and revenue projections.
Shares of companies tied to artificial intelligence infrastructure fell Tuesday after a Wall Street Journal report said OpenAI had recently missed its own projections for user growth and revenue.
The reaction was sharpest among companies viewed as closely linked to the AI buildout. Oracle, which has a $300 billion, five-year partnership to provide computing power to OpenAI, dropped 4%. Broadcom fell 4%, Advanced Micro Devices declined 3%, and Nvidia was down more than 1%. CoreWeave, described by CNBC as a leveraged neocloud stock, lost more than 5%, while SoftBank Group, one of OpenAI’s largest investors, sank about 10% in Asia.
The report renewed a central question hanging over the AI trade: whether fast-growing demand can support the enormous spending commitments required to build data centers and secure long-term computing capacity. According to the Journal report cited by CNBC, the shortfall has raised concern inside OpenAI about whether revenue growth can keep pace with those obligations.
CNBC reported that OpenAI pushed back on the Journal’s account. “This is ridiculous. We are totally aligned on buying as much compute as we can and working hard on it together every day,” the company said.
Oracle also defended the partnership, saying it is seeing OpenAI adoption accelerate and remains focused on delivering the capacity the company needs. An Oracle spokesperson said OpenAI’s new 5.5 model is “a significant step forward” and that the company expects continued momentum as access expands across cloud providers.
The market reaction comes after OpenAI recently closed a $122 billion funding round at a post-money valuation of $852 billion, according to CNBC. Some investors questioned whether the Journal report materially changes the broader outlook for AI spending. John Belton, a portfolio manager at Gabelli Funds, told CNBC the report looked more like confirmation of OpenAI’s recent market-share trends than evidence of a sectorwide slowdown.
The immediate focus now is whether OpenAI’s revenue growth accelerates enough to support its compute agreements — and whether investors continue to treat any softness as a company-specific issue or a warning sign for the wider AI infrastructure boom.
Comments (0)