OpenAI’s Near-$50 Billion Revenue Report Weighs on Tech Stocks
OpenAI told investors its annualized revenue was nearing $50 billion, below a $70 billion figure previously reported by media. The discrepancy came as technology stocks fell, with the Nasdaq Composite recording its worst day since mid-August. Investors are weighing what lower-than-expected revenue could mean for companies and suppliers betting on continued demand for artificial intelligence.
Open AI told investors its annualized revenue was nearing $50 billion, about $20 billion below a figure previously reported by media. The report sent technology stocks lower on Thursday, as investors reassessed whether demand for artificial intelligence can support the industry’s heavy spending.
The Nasdaq Composite sank 1.25%, its worst day since mid-August, while the S&P 500 fell 0.5%. Losses accelerated after the Financial Times report was published midday, adding pressure to companies tied to the AI buildout.
Why the Open AI revenue figures differ
The $70 billion figure had appeared in earlier media reports, including reports based on information from investors. But a source familiar with the documents said the number did not come from OpenAI.
The source said the higher figure likely reflected an effort by firms to compare OpenAI’s numbers with Anthropic’s. That comparison matters because Anthropic’s revenue figure includes gross revenue from cloud providers, while OpenAI’s is based on net revenue.
OpenAI declined to comment. The distinction between gross and net revenue offers a possible explanation for the gap, but the source’s account does not change the figure the company recently gave investors: revenue nearing $50 billion.
That is a consequential difference for a market watching whether AI companies can turn demand into profits. Investors have questioned whether OpenAI and Anthropic can justify the vast spending tied to building out AI infrastructure. For chipmakers and cloud providers, confidence in sustained demand helps underpin expectations for their businesses.
AI stocks feel the pressure
The sell-off spread across semiconductor makers, cloud providers and other technology companies involved in the AI buildout. Nvidia fell 2.9%, Intel dropped 5.3% and Oracle declined 5.5%.
Ross Mayfield, an investment strategist at Baird, said weaker-than-expected revenue at OpenAI could ripple through the companies that supply and support AI services. “There are going to be tremors throughout all of the related sub-industries,” Mayfield said.
Those potential effects reach beyond company valuations. If investors become less confident that AI demand will keep growing, suppliers could face pressure as markets reassess the business case for the spending behind the buildout. The day’s losses showed how closely technology shares have become tied to expectations for AI.
Mayfield said tech and AI stocks had helped lift the market in recent weeks, while other sectors struggled under pressure from rising bond yields. “This has become a much narrower market that’s dependent on the AI names to keep it afloat,” he said. “Certainly, this is going to hit that complex in a big way.”
OpenAI CEO Sam Altman announced in September that the company would postpone its initial public offering until at least next year, citing concerns about AI safety. Anthropic is expected to launch its IPO later this fall and is reportedly seeking a $2 trillion valuation.
In August, Bloomberg and Reuters reported that Anthropic was on track to generate annualized revenue of more than $65 billion. The latest OpenAI investor figure, by contrast, was nearing $50 billion.
