OpenAI's revenue came in $20bn light, and AI stocks paid for it
OpenAI told investors its annualized revenue was approaching $50bn, the FT reported, not the $70bn that had circulated, and the AI trade sold off. The Nasdaq 100 fell 1.39%, Oracle 5.5%, CoreWeave 7.8% and Micron 4.8%, while the Dow edged up. Bonds rallied, the thirty-year down 7bp to 5.60%.
- Nasdaq 100
- −1.39%
- S&P 500
- −0.47%
- Oracle
- −5.5%
- 30-year
- 5.60%−7bp
OpenAI's run rate came in $20bn light
NDX −1.39%OpenAI told investors its annualized revenue was approaching $50bn at the end of September, the FT reported, against the roughly $70bn that had been doing the rounds. That higher figure came from media reports, never from OpenAI, and a source told the FT it likely reflected an attempt to match Anthropic's gross accounting of cloud revenue, where OpenAI reports net. The Nasdaq 100 fell 1.39% and the S&P 0.47%, while the Dow edged up 0.10%.
AI's landlords took the hardest hit
ORCL −5.5% · CRWV −7.8%The companies building capacity for OpenAI fell furthest. CoreWeave lost 7.77% and Oracle 5.48%. Microsoft, OpenAI's largest backer, fell 1.35%. Meta and Alphabet, with their own models, barely moved.
Chips sold off with them
SMH −2.8% · MU −4.8%The chip ETF fell 2.84%. Micron dropped 4.79%, the memory ETF 5.13%, Broadcom 4.35%, AMD 3.90% and Nvidia 2.94%, two days after AMD and the Nasdaq closed at records.
Bonds rallied
10-yr 5.22% · 30-yr 5.60%The ten-year fell 6bp to 5.22% and the thirty-year 7bp to 5.60%, with the two-year down 2bp at 4.75%.