OpenAI’s $50 Billion Annualized Revenue Misses Estimates, Chilling AI Optimism
Summary
- OpenAI’s annualized revenue was reported at about $50 billion, or 29% below the market’s $70 billion forecast.
- The weaker-than-expected results added to doubts about the AI industry’s growth outlook.
- AI infrastructure stocks and shares of AI chipmakers, including Nvidia (-2.94%), fell together.
Forecast Trend Report by Period
Annualized Revenue Comes In 30% Below Expectations at $50 Billion
OpenAI’s annualized revenue stands at about $50 billion, roughly $20 billion below market expectations. The miss fueled doubts about the growth prospects of the artificial intelligence industry and dragged down AI infrastructure stocks.
The Financial Times reported on October 8 that OpenAI told investors its annualized revenue was about $50 billion. That is 29% below the market forecast of $70 billion. Annualized revenue measures sales for a given period as if they were sustained for a full year.
The weaker-than-expected figure dealt a blow to market optimism around AI. Shares of AI chip companies, including Nvidia, all fell, with Nvidia down 2.94%.
Hwang Jung-soo, New York correspondent hjs@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.