Nvidia, Oracle, CoreWeave Stocks Drop After Revised OpenAI Revenue Estimate
Shares of major AI companies like Nvidia (NVDA), Oracle (ORCL), and CoreWeave (CRWV) fell after new details emerged about OpenAI's revenue. Initially reported as $68 billion in annualized revenue, the figure was later revised to approximately $50 billion at the end of September 2024. The original higher number included gross partner revenue, which made it easier for investors to compare with rival Anthropic. This downward revision raised concerns about OpenAI's growth trajectory and valuation potential. OpenAI reported a total run rate growth of 77% in Q3 and 107% enterprise business growth during the same period. The company is preparing for an anticipated IPO, expected as early as 2027, but faces pressure to justify its $852 billion valuation. OpenAI has also engaged in preliminary discussions about a new funding round that could raise up to $30 billion. The revised revenue numbers have triggered market reactions across the AI sector, with investors reassessing growth expectations and valuations for both OpenAI and related companies.
Topics: AI stocks CoreWeave Nvidia OpenAI revenue update Oracle