Tech Stocks Fall as OpenAI Reports Lower Revenue
OpenAI's revenue report led to a decline in tech stocks, affecting companies like Nvidia and Oracle.
Tech Stocks Plunge on OpenAI Report
Tech stocks experienced a significant downturn on Thursday after news emerged that OpenAI’s annualized revenue is lower than previously reported. OpenAI, the developer of the popular AI chatbot ChatGPT, recently informed investors that its annualized revenue was nearing $50 billion, significantly lower than the $70 billion figure widely reported.
The discrepancy affected several tech stocks, with Nvidia, Intel, and Oracle all experiencing drops in share prices. The Nasdaq Composite dropped 1.25%, its worst day since mid-August, while the S&P 500 fell 0.5%, with tech stocks bearing the brunt of the decline.
OpenAI’s Financial Projections
According to sources familiar with the documents, the $70 billion figure did not originate from OpenAI but was likely an attempt by firms to compare OpenAI’s numbers with those of rival Anthropic, which includes gross revenue from cloud providers.
OpenAI’s revenue is based on net revenue, providing a clearer picture of the company’s financial health. The company has postponed its initial public offering until at least next year, citing concerns about AI safety.
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