OpenAI Fails to Meet Revenue Targets, Oracle and Multiple Chip Stocks Decline
Reports indicate OpenAI has not met its internal growth expectations, sparking renewed doubts about the sustainability of high spending in the artificial intelligence industry. As a result, shares of numerous AI infrastructure-related companies plummeted in early trading on Tuesday. Oracle's stock price fell sharply by approximately 7.5% in pre-market trading on Tuesday, as the company has a five-year, $300 billion partnership with OpenAI to provide computing power for its AI business.
Nvidia, Broadcom, and Super Micro Computer saw their stock prices decline by approximately 2% to 5%.
Qualcomm's stock fell 3.5%. Previously, news that Qualcomm was collaborating with OpenAI to develop mobile chips adapted to its hardware layout had briefly boosted its stock price on Monday. Leveraged emerging cloud computing company CoreWeave saw its stock price drop 7%.
In Asian markets, SoftBank Group, one of OpenAI's largest investors, plummeted approximately 10%.
The Wall Street Journal reported that OpenAI's recent user growth and revenue data have both fallen short of internal expectations. The performance gap has raised internal concerns about the company's ability to continue to bear the massive capital investment required to expand data centers and secure long-term computing resources.
The report stated that Chief Financial Officer Sara Fryer has warned internal employees that if revenue growth cannot be improved, the company may struggle to fulfill its computing power procurement agreements in the future.
Vital Knowledge trading strategist Adam Crisafulli stated in a morning research report that the report "has led outsiders to question whether OpenAI can deliver on its massive infrastructure build-out commitments."