OpenAI missed internal targets for revenue and user growth according to The Wall Street Journal. CFO Sarah Friar warned that slowing growth threatens the company's ability to pay for massive future computing contracts. These internal concerns raise questions about the sustainability of the AI infrastructure spending boom.
The Nasdaq 100 fell 1.3% as the news triggered a broad technology sell-off. SoftBank shares plunged nearly 10% following the report. Oracle stock dropped over 7%. CoreWeave shares fell by a similar 7% margin.
The negative market sentiment spread across the semiconductor industry. Shares of Nvidia, AMD, and Arm Holdings all declined.