A report that OpenAI’s revenue run-rate came in $20B below estimates rattled AI stocks. A second report of a $70B year-end target steadied markets, but the episode was a live test of whether the AI spending boom is paying off.
Key details: The FT reported that OpenAI’s annualized revenue topped out at $50 billion, $20 billion short of estimates. This sparked the Nasdaq’s worst day since August before a $70B year-end target eased fears.
Bloomberg later reported that OpenAI expects to reach or exceed $70 billion in annualized revenue by year-end.
The scare gave the Nasdaq its worst day since mid-August.
The episode was a live test of whether the AI spending boom is paying off, how tenuous the grip on hope is, and how quickly it would give in to worst fears at the slightest glimpse of converse news.
Chipmakers rebounded later on Friday, and Nvidia gained 1.5%.