OpenAI Revenue $20B Below Previous Reports, ORCL, NVDA Tumble

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AI stocks fell Thursday as new figures put OpenAI's annualized revenue roughly $20 billion below previous reports, raising questions about the sector's growth.

The ChatGPT maker told investors its annualized revenue was approaching $50 billion at the end of September, rather than the $70 billion previously reported, the Financial Times reported Thursday. Annualized revenue projects the current pace of sales over a full year.

The discrepancy does not mean OpenAI lost $20 billion in sales. It reflects differences in how investors calculated its revenue.

AI Stocks Fall

Bloomberg's Lisa Abramowicz pointed to the market reaction as evidence of how dependent the technology sector has become on OpenAI and rival Anthropic.

She highlighted a drop of more than 5% in Oracle Corp. (NYSE:ORCL), alongside losses in Nvidia Corp. (NASDAQ:NVDA), Advanced Micro Devices Inc. (NASDAQ:AMD) and Microsoft Corp. (NASDAQ:MSFT).

The Nasdaq was down 1.4% in afternoon trading, with Barron's linking the decline partly to the OpenAI report. Rising oil prices and Treasury yields also pressured stocks.

Why the Numbers Differ