Tech stocks drop after report that OpenAI’s revenue is lower than expected
OpenAI told investors the figure was near $50 billion, about $20 billion below earlier estimates that had fueled AI stock gains.
- OpenAI reported annualized revenue hit $50 billion at the end of September, falling significantly short of the $68 billion figure widely reported last month, according to investor documents confirmed by CNBC.
- The Financial Times first revealed the discrepancy, which stems from different accounting methods for cloud-partner sales, triggering a sell-off in AI stocks from Nvidia to Oracle and CoreWeave.
- Despite 77% total run rate growth reported in the third quarter, a $20 billion differential from month-to-month drew investor concern, with July rates previously adjusted to about $40 billion for Anthropic comparisons.
- CEO Sam Altman confirmed the company will not attempt an IPO this year while working to justify a valuation of over $850 billion, noting that "every metric matters" at this scale.
- The long-term outlook for artificial intelligence remains bright, with experts advising investors to maintain well-diversified portfolios; buying quality AI stocks today could yield significant long-term gains despite current market caution.
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178 Articles
Sam Altman's AI company's annual turnover is currently estimated to be 50 billion dollars, not 70 billion, as previously colported. On Thursday, the news dropped the share prices of many tech companies.
AI Chip Stocks Fall After Report on OpenAI Revenue Shortfall
Micron Technology, Nvidia and other artificial-intelligence-related chip stocks declined Thursday, Oct. 8, after investors reacted to a report on OpenAI's revenue, according to the Financial Times (FT). The report said OpenAI told investors its annualized revenue was near $50 billion in late September, about $20 billion below its earlier $70 billion projection. Annualized revenue is calculated by taking revenue from a short period and multiplyin…
OpenAI expects US$70bn in annualized revenue
OpenAI is expecting to reach or exceed US$70 billion in annualized revenue by the end of the year, according to people familiar with the matter, driven largely by growth in its enterprise business.The ChatGPT maker’s annualized revenue was roughly US$50 billion at the end of last month, the people s
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