Chip and Cloud Stocks Stabilize After OpenAI Revenue Discrepancy Triggers Selloff
Technology and semiconductor shares stabilized in overnight trading following a sharp regular-session decline. Nvidia Corp. (NVDA), Oracle Corp. (ORCL), and CoreWeave (CRWV) edged higher after a selloff triggered by reports that OpenAI (NASDAQ:OPENAI) recorded approximately 50 billion dollars in annualized revenue at the end of September. This figure fell short of the 70 billion dollar run rate previously reported, raising concerns among investors about the pace of artificial intelligence monetization relative to massive infrastructure spending.
The discrepancy in OpenAI's financial figures came from how revenue is recognized. The higher 70 billion dollar figure included revenue generated through cloud partners, whereas the 50 billion dollar figure reflects direct revenue. Some industry analysts dismissed the market's negative reaction as overblown, noting that the company's growth remains substantial and the confusion simply stemmed from comparing gross and net revenue calculations.
Looking ahead, investors are closely monitoring the path to initial public offerings for major artificial intelligence firms. Anthropic is expected to pursue an IPO after the U.S. midterm elections in November, having grown its revenue to nearly 4.6 billion dollars in 2025. OpenAI's private market valuation stands at 958.6 billion dollars, while Anthropic is valued at 1.34 trillion dollars, highlighting the massive scale of these upcoming market debuts.
Key points
- OpenAI reported roughly 50 billion dollars in annualized revenue at the end of September, below the previously reported 70 billion dollar figure.
- The revenue difference is due to accounting methods, as the larger figure included sales through cloud partners while the lower figure did not.
- Chipmakers and cloud stocks stabilized in overnight trading after a regular-session selloff triggered by the revenue disclosure.
- Investors are looking ahead to potential initial public offerings for both OpenAI and Anthropic, which hold private valuations of 958.6 billion dollars and 1.34 trillion dollars, respectively.
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How we writeDisclaimerQuestions and answers
Why did OpenAI's revenue figure trigger a selloff in chip and cloud stocks?
OpenAI's annualized revenue of 50 billion dollars was lower than the widely reported 70 billion dollar figure, raising concerns that artificial intelligence monetization is not keeping pace with massive infrastructure spending.
What caused the discrepancy in OpenAI's reported revenue figures?
The difference is due to revenue recognition. The 70 billion dollar figure included revenue from cloud partners to allow comparison with Anthropic, while the 50 billion dollar figure represents direct revenue.