{"id":423700,"date":"2026-04-29T16:52:36","date_gmt":"2026-04-29T16:52:36","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/423700\/"},"modified":"2026-04-29T16:52:36","modified_gmt":"2026-04-29T16:52:36","slug":"market-slumps-as-openai-reportedly-misses-internal-targets-for-active-users-and-revenue-nvidia-oracle-amd-and-coreweave-shares-all-tremble-on-the-news","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/423700\/","title":{"rendered":"Market slumps as OpenAI reportedly misses internal targets for active users and revenue \u2014 Nvidia, Oracle, AMD, and CoreWeave shares all tremble on the news"},"content":{"rendered":"

OpenAI has reportedly missed its internal targets for the number of active ChatGPT users, as well as multiple revenue goals. Because of this, The Wall Street Journal<\/a> reports that CFO Sarah Friar has expressed worries about whether the firm can afford the billions of dollars of future compute contracts it has taken on.<\/p>\n

The company is banking on explosive growth to fund all these expenses, with Altman and Friar saying in a joint statement toWSJ, \u201cWe are totally aligned on buying as much compute as we can and working hard on it together every day.\u201d Many corporate investors felt that it was on the right track, with the startup raising $122 billion in its latest funding round, exceeding it $100 billion target<\/a>. However, one analyst said that OpenAI could run out of cash by mid-2027<\/a> unless it continues bringing in massive amounts of investments, like what we saw recently.<\/p>\n

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Even though executives from Nvidia, Oracle, SoftBank, and many other companies invested in OpenAI see potential, the market is beginning to doubt them. As soon as the news of OpenAI\u2019s shortfall started circulating, MarketWatch<\/a> reported that firms with heavy involvement in the AI firm saw a drop in their stock prices during pre-market trading. This included Nvidia (-1%), AMD (-4%), Oracle (-5%), and CoreWeave (-5%). SoftBank closed at 9.9% lower in the Tokyo Stock Exchange, making it one of the worst performers in the Nikkei 225.<\/p>\n

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Microsoft<\/a> seems to be the only company that\u2019s closely intertwined with OpenAI and hasn\u2019t been affected by a drop in stock prices. That\u2019s because although it has ended its exclusivity agreement with OpenAI<\/a> recently, it still holds 27% of OpenAI\u2019s for-profit business and has invested billions into the startup.<\/p>\n

While OpenAI kickstarted the LLM race when it publicly released ChatGPT in December 2022, many other competitors have since gained ground. The company has lost market share to Anthropic and its Claude family of models, especially among programmers and corporate users. Google<\/a>‘s Gemini family has also started to outpace ChatGPT in several benchmarks<\/a>, leading OpenAI CEO Sam Altman to declare a \u201cCode Red\u201d<\/a> late last year.<\/p>\n

Despite this, Altman has signed deals worth billions of dollars to secure future computing power, including a 4.5-gigawatt contract with Oracle<\/a> worth $300 billion and a $100 billion alliance<\/a> that will deliver 10 gigawatts\u2019 worth of Nvidia hardware to data centers.<\/p>\n

The market has seemingly panicked about the news of OpenAI\u2019s missed targets, renewing fears that the AI fever among investors could break. Nevertheless, it seems that Altman is pushing to acquire more computing power, arguing that shortages in capacity is what\u2019s limiting the startup\u2019s growth. Anthropic CEO Dario Amodei once said in a conference that some companies are pushing for infrastructure investments too far, but OpenAI disagreed. In a memo addressed to its investors, OpenAI said, \u201cIn hindsight, that caution looks less like discipline and more like underestimating how fast demand would arrive” \u2014 a statement that might now seem overly optimistic.<\/p>\n

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