OpenAI revenue report shakes AI stocks as investors reassess sector growth

AI stocks fell broadly Thursday after reports showed OpenAI's reported annualized revenue was about $50 billion, roughly $20 billion below earlier figures, prompting investors to reassess growth expectations across the AI sector. The discrepancy stems largely from differing accounting methods, as some estimates included gross revenue attributable to cloud partners while OpenAI's figure excluded those shares. Nasdaq Composite dropped 1.25%, with Nvidia, AMD, and Oracle falling 2.9%, 3.9%, and 5.5% respectively, though some losses were partially recovered Friday. The event highlighted investor sensitivity to AI-related developments, with concerns extending to infrastructure spending, valuations, and financing conditions. A cancelled $5 billion IPO by Nvidia-backed cloud firm Firmus Grid added to scrutiny of AI infrastructure valuations.