Oracle and CoreWeave lead AI decline on OpenAI growth concerns

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<span>STORY: Shares of AI companies fell on Tuesday after a report raised new questions about OpenAI’s growth prospects.</span><span>The Wall Street Journal reported that OpenAI has missed internal targets for new users and revenue in recent months.</span><span>The report also said that OpenAI’s chief financial officer has expressed concerns to other industry leaders about the company’s ability to pay future computing contracts if revenue does not accelerate.</span><span>The news rippled through the market, sending Oracle’s stock price down as much as 6%.</span><span>:: oracle</span><span>The cloud provider reportedly signed one of the largest AI infrastructure deals in history with OpenAI. This includes approximately $300 billion worth of computing power over five years.</span><span>Investors have become increasingly nervous about how Oracle plans to fund data center expansion, putting the company’s stock, bond and credit risk metrics under pressure.</span><span>:: Coreweave</span><span>::AMD</span><span>Shares of other OpenAI partners also fell. CoreWeave fell by 8%. Arm Holdings fell more than 9%. Chipmakers such as Nvidia, AMD and Broadcom also fell.</span><span>Also, shares of Japan’s SoftBank Group, a major investor in OpenAI, closed nearly 10% lower in Tokyo trading. </span><span>Despite the decline, one investment adviser told Reuters that the growth concerns reported by OpenAI do not mean the industry is “slowing down” and that competition is probably just increasing. </span><span>The scrutiny comes as OpenAI lays the groundwork for a potentially massive IPO that could value the company as much as $1 trillion.</span>



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