Explained - The Wall Street Journal report that sent tech stocks tumbling on Wall Street
A Wall Street Journal report stated that OpenAI failed to meet its internal user addition and sales targets, causing tech stocks linked to the start-up to tumble. OpenAI responded by stating that its consumer and enterprise businesses are 'firing on all cylinders', despite not admitting or denying the report's claims.
The S&P 500 and Nasdaq fell on Tuesday, April 28, as a Wall Street Journal report on OpenAI sent tech stocks tumbling. The report stated that OpenAI missed several monthly targets and failed to meet its 1 billion weekly active users target for ChatGPT by end of 2025. OpenAI's CFO Sarah Frier expressed concerns that if sales do not increase, the company may not afford future computing needs. OpenAI responded, stating that its businesses are growing, despite not confirming or denying the report. Stocks linked to OpenAI, including Oracle Corp., Coreweave, Nvidia, and AMD, declined, with SoftBank falling 10% in Asian trading.
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