AI stocks crumble on report that OpenAI’s annualized revenue is much lower than believed
SiliconANGLE Mike Wheatley ● Covered by 3 sources
OpenAI told investors its annual revenue is near $50 billion, not $68 billion. That gap jolted AI stocks and revived doubts about the boom.
Based on reporting by SiliconANGLE, Mike Wheatley — read the original for the full story.
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AI stocks got hit hard today after the Financial Times reported that OpenAI’s annualized revenue is much lower than many investors had been led to believe. The company recently told prospective investors it was approaching $50 billion in annualized revenue this year, not the $68 billion figure that had been widely circulating two months ago. That difference was enough to spook a market already full of nerves about AI valuations.
The market reaction was immediate. The Nasdaq fell 1.25%, its worst one-day showing since mid-August, while the S&P 500 slipped 0.5%. Both indexes opened lower, then dropped further after the Financial Times report landed. The concern is simple: if the revenue story is softer than expected, the whole AI trade starts to look less like certainty and more like a very expensive bet.
OpenAI’s numbers are also being framed differently. An anonymous source said the earlier $68 billion figure included gross revenue from partners, while the newer $50 billion figure was based on net revenue. OpenAI also pointed to 77% growth in its annual revenue run rate during the third quarter, plus 107% growth in its enterprise run rate. Those are strong numbers. They just weren’t strong enough to stop the selloff.
The damage spread quickly through the supply chain of AI optimism. Oracle fell 5.5%, Intel lost 5.3%, Nvidia declined 2.9%, and CoreWeave dropped 8%. AMD and Broadcom both slipped 4%, while Super Micro Computer fell almost 5%. These companies have all been trading on the idea that AI demand keeps rising and keeps spending with it. When that story wobbles, even a little, investors reach for the exit.
OpenAI itself is under pressure for a different reason: it has to justify an $852 billion valuation while preparing for one of the most anticipated IPOs in years. It filed confidentially with the SEC in June, had originally planned to go public this year, and has since pushed that timing toward 2027. Sam Altman said last month that the delay was tied to the ongoing debate around AI safety. Anthropic is also headed toward the public markets, with talk of a 2026 IPO and even a possible Nov. 9 debut, though that company too has people arguing over whether its valuation makes sense.
My take — AI-written commentary, not fact-checked reporting
This is what happens when AI gets priced like a miracle and reported like a spreadsheet. The market doesn’t actually want nuance; it wants a clean story and a bigger number. OpenAI just reminded everyone that there’s a difference between revenue, partner revenue, and investor-grade vibes.
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