OpenAI revenue report sends AI stocks lower
AI firm OpenAI reported annualized revenue of approximately $50 billion at the end of September, below previous widely reported figures. The news impacted shares of major technology companies.
Shares of major artificial intelligence companies, including Nvidia, Oracle, and CoreWeave, experienced declines on Thursday following new financial details released by OpenAI.
OpenAI informed investors that its annualized revenue reached approximately $50 billion by the end of September. This figure is notably lower than the $68 billion figure widely circulated late last month. The Financial Times first reported the $50 billion number. A source familiar with the matter, who requested anonymity to discuss the figures, clarified that the earlier $68 billion estimate included gross revenue from OpenAI's partners, intended for comparison with competitor Anthropic.
The company shared these updates during an investor presentation. In addition to the $50 billion annualized revenue, OpenAI reported a 77% growth in total run rate during the third quarter. Its enterprise business saw a run rate growth of 107% in the same period.
Following the report, Nvidia's stock fell 3%, Oracle's dropped nearly 6%, and CoreWeave's slipped almost 8%. Other semiconductor and AI-related stocks, such as Advanced Micro Devices, Broadcom, Intel, and Super Micro Computer, also saw significant decreases.
The market reaction highlights investor scrutiny as OpenAI, valued at an estimated $852 billion, prepares for a potential initial public offering (IPO). The company confidentially filed its IPO prospectus in June, with expectations pointing to a 2027 debut. Competitor Anthropic is also reportedly preparing for a major IPO, engaging with investors for a valuation potentially reaching $2 trillion.