AI stocks fall after reports OpenAI's revenue trails prior figures
Nvidia, Oracle, CoreWeave and other AI-linked shares dropped after reports that OpenAI's annualized revenue came in below earlier figures, though outlets differ on the size of the gap and what it means for the AI boom.
What happened
Shares of AI chip and infrastructure companies including Nvidia, Oracle, CoreWeave and Micron fell after reports that OpenAI's annualized revenue was lower than previously indicated.15
The Financial Times reported that OpenAI's annualized revenue was about $20 billion below the figure it had previously indicated.234
OpenAI had previously been reported to have annualized revenue of roughly $70 billion.4
CNBC reported that OpenAI told investors it reached roughly $50 billion in annualized revenue at the end of September.5
The Nasdaq 100 fell 1.9% and the S&P 500 declined 0.9% amid the selloff, while the 10-year Treasury yield rose to 5.3%.2
What's agreed
Reported consistently by outlets in more than one region.
Where accounts differ
Each account is attributed to who makes it. We do not judge between them.
Size and nature of the revenue shortfall
Financial Times, via The Economic Times and CNA
OpenAI's annualized revenue was about $20 billion below the figure it had previously indicated.23
TechCrunch, citing an unnamed prior report
OpenAI's annualized revenue had previously been reported at approximately $70 billion, with a new report putting it well below that.4
CNBC, citing OpenAI's statement to investors
OpenAI told investors it hit roughly $50 billion in annualized revenue at the end of September, a figure CNBC said it confirmed.5
What the revenue report means for the AI sector
Analysts cited by MarketWatch
The shortfall reflects differences in how the revenue figure is reported, not weakness in AI demand, causing what MarketWatch called 'undue concern.'1
Investors and traders described by The Economic Times
The report deepened concerns that OpenAI's revenue could disappoint and raised questions about the sustainability of the AI boom.2
How it's framed
What each perspective puts first, based on headlines and summaries.
| Perspective | How it reads | What it puts first |
|---|---|---|
| US financial and tech outletsNorth America | US outlets focus on the stock market reaction and offer competing explanations, from analysts downplaying the shortfall to reporting on OpenAI's own investor disclosures.145 | stock price moves, analyst reassurance, company-specific figures |
| South Asian financial press relaying Western wire reportingSouth Asia | The Economic Times, relaying Bloomberg and Financial Times reporting, emphasizes broader market indexes falling and ties the OpenAI news to wider questions about AI boom sustainability and rising bond yields.2 | Nasdaq and S&P declines, Treasury yields, AI boom sustainability |
| Southeast Asian state-controlled outletSoutheast Asia | CNA offers a brief, neutral relay of the Financial Times figure on OpenAI's revenue shortfall without additional market commentary.3 | FT-sourced figure, brief factual relay |
What the coverage leaves out
- None of the outlets reviewed reported an on-the-record response from OpenAI explaining the discrepancy between the different revenue figures cited.
- None of the outlets reviewed detailed the specific methodology differences that analysts say account for the reporting gap.
- None of the outlets reviewed reported how Nvidia, Oracle or CoreWeave responded to the stock declines.
Why it matters
The stock moves occurred amid broader investor questions about the sustainability of the AI boom and in the context of rising Treasury yields.2
What to watch
- Further clarification from OpenAI or the Financial Times on the exact revenue figures and reporting methodology.
- Market reaction in subsequent trading sessions for Nvidia, Oracle, CoreWeave and Micron.
Sources (5)
Every outlet we drew on, grouped by where it is based. Read the originals for the full reporting.
North America
South Asia
- 2The Economic TimesINPrivate
Tech stocks drag Nasdaq lower on report of OpenAI revenue fall, high yields
Southeast Asia
- 3CNASGState-controlled
OpenAI's annualized revenue $20 billion less than previously signaled, FT reports