Troubles at OpenAI are rippling across global equity markets, triggering a sharp selloff in artificial intelligence-linked stocks and weighing on the tech-heavy Nasdaq Composite, which fell over 1% on Tuesday.
The weakness follows a Wall Street Journal report that OpenAI missed internal targets for revenue and user growth, raising fresh doubts about the sustainability of the massive investments underpinning the AI boom.
Among the biggest casualties were chipmakers and infrastructure partners. Shares of Nvidia fell around 2.4% to $211.37 as of 1:41 pm GMT-4. Oracle dropped 3.37% to $167.16, while Advanced Micro Devices (AMD) declined 3.17% to $324.01 at the same time, reflecting broad investor concerns over AI-linked demand visibility.
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The selloff extended beyond the US. Japan's SoftBank Group, a major backer of OpenAI, plunged nearly 10% in Tokyo trading, while cloud infrastructure firm CoreWeave also saw notable losses.
According to the Wall Street Journal, OpenAI fell short of its internal goal of reaching one billion weekly active users for ChatGPT by end-2025 and missed several revenue targets this year amid rising competition from rivals like Anthropic.
The report added that Chief Financial Officer Sarah Friar warned executives the company may struggle to fund future computing contracts if growth does not accelerate.
“[This] raises questions about whether [OpenAI] can fulfill its massive infrastructure obligations,” said Adam Crisafulli of Vital Knowledge.
OpenAI, however, pushed back strongly. A company spokesperson called the report “clickbait,” stating the business is “firing on all cylinders,” with improving consumer traction and strong enterprise momentum.
The concerns have cast a shadow over billions of dollars in AI infrastructure deals. OpenAI has signed multi-year agreements worth hundreds of billions with partners including Oracle, Nvidia and others, as part of an aggressive expansion strategy.
Its valuation has surged to about $852 billion following recent funding rounds, with long-term computing spend projected at up to $600 billion by 2030.
Beyond tech, broader markets are also reacting to geopolitical developments. Oil prices moved higher as uncertainty persists around reopening the Strait of Hormuz, while the UAE's decision to exit OPEC added another layer of volatility.
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