AI stocks crumble on report that OpenAI’s annualized revenue is much lower than believed

What happened

A report today by the Financial Times revealed that OpenAI recently told prospective investors that its annualized revenue […] The post AI stocks crumble on report that OpenAI’s annualized revenue is much lower than believed appeared first on SiliconANGLE . A report today by the Financial Times revealed that OpenAI recently told prospective investors that its annualized revenue was approaching $50 billion – far below the $68 billion figure that was widely reported two months ago. OpenAI is an artificial intelligence company based in San Francisco.

Both indexes opened lower today, only for the declines to accelerate following the Financial Times report. Technology stocks fell lower today following a report that artificial intelligence giant OpenAI Group PBC’s annualized revenue this year is about $20 billion less than what was previously reported by the media, sending shockwaves through the industry.

The discrepancy between the reports appears to have rattled investors Many had already been questioning whether the demand for AI will be strong enough to justify the sky-high valuations of OpenAI and its rival Anthropic PBC, which are both gearing up for initial public offerings to capitalize on the AI boom. The Nasdaq index fell 1.25% today, its worst single-day performance since mid-August, while the broader S&P 500 fell 0.5%, weighed down by a decline in tech-related stocks. An anonymous source, who asked not to be named in order to discuss OpenAI’s finances, said company officials provided the $50 billion figure during an investor presentation.

Key facts

• The discrepancy between the — reports: appears to have rattled investors Many had already been questioning whether the demand for AI will be strong enough to justify the sky-high valuations of OpenAI and its rival Anthropic PBC, which are both gearing up for initial public offerings to capitalize on the AI boom