US Stock Market Drops After OpenAI Reports Earnings Below Expectations
October 10, Kathmandu – The US stock market declined following news that OpenAI, the creator of ChatGPT, reported annual earnings lower than expected. Reports indicated that OpenAI’s annual revenue was approximately $20 billion less than previously disclosed. This development caused technology company stock prices to fall, according to the Financial Times.
Previously, media sources based on investor information had cited OpenAI’s annual revenue at around $70 billion. However, OpenAI recently informed investors that its actual annual revenue neared $50 billion. The approximately $20 billion discrepancy between prior public data and OpenAI’s recently disclosed figures triggered a 1.25% drop in the Nasdaq Composite index, which is heavily weighted toward technology firms, as reported by CNN on Thursday.
This marked the largest single-day decline in the Nasdaq since mid-August. The S&P 500 index also declined by 0.5%. The market had been trending downward since the opening bell. Following the earnings news, shares of semiconductor chip manufacturers, cloud service providers, and other technology companies involved in AI infrastructure construction also fell. NVIDIA’s stock dropped by 2.9%, Intel’s by 5.3%, and Oracle’s by 5.5%.
Concerns have been raised about whether the demand for AI could profit companies like OpenAI and Anthropic. While Anthropic includes total revenue from cloud service providers in its earnings calculation, OpenAI reportedly bases its calculation solely on its gross revenue.