OpenAI-linked stocks slump on report it missed key targets
Stocks of companies linked to OpenAI slumped after a report that the AI firm missed key sales and user targets, raising doubts about the profitability of AI investments. OpenAI's potential struggles could impact the entire AI infrastructure ecosystem, including companies like Oracle, Microsoft, and CoreWeave.
A report that OpenAI missed key sales and user targets has dragged down stocks of companies linked to the AI firm. Oracle and CoreWeave, which have cloud-computing pacts with OpenAI, dropped 4% and 6%, respectively. Chipmakers Advanced Micro Devices and Nvidia also dipped. OpenAI's Chief Financial Officer Sarah Friar has expressed concerns internally that the firm might not be able to pay for future computing contracts if revenue doesn't grow fast enough. The company is set to report earnings soon, along with other big tech companies like Alphabet, Microsoft, and Amazon. OpenAI's struggles could impact the entire AI infrastructure ecosystem, with Oracle being the most exposed in terms of risk to its financial goals.
This content was automatically generated and/or translated by AI. It may contain inaccuracies. Please refer to the original sources for verification.