Technology stocks took a hit during Tuesday’s pre-market session after the Wall Street Journal published a report indicating that OpenAI has failed to meet its targets for both new user acquisition and revenue generation in recent months, sparking questions about the artificial intelligence company’s future growth trajectory.
According to sources familiar with the situation cited in the report, OpenAI’s Chief Financial Officer Sarah Friar has voiced worries about whether the company will generate sufficient revenue to cover upcoming computing service agreements.
Oracle experienced the steepest decline, with shares falling 7.7% to $159.80 in pre-market activity. The database giant reportedly entered into one of the largest cloud computing agreements with OpenAI, valued at $300 billion for computing services spanning five years.
CoreWeave, an AI startup supported by Nvidia, saw its stock price decrease 7.4% to $104. The company recently finalized an $11.9 billion deal with OpenAI last month to supply artificial intelligence infrastructure services.
International markets also felt the impact, with Japan’s SoftBank Group, a significant OpenAI investor, ending Tokyo trading nearly 10% lower, while Arm Holdings dropped 8.1%.
SoftBank has committed to providing $22.5 billion in funding to OpenAI before the end of the year through various fundraising methods, which could include utilizing unused margin loans secured against its stake in Arm Holdings, according to sources who spoke with Reuters in December.
