OpenAI revenue confusion impacts Nvidia and Oracle stocks

Confusion regarding OpenAI’s projected revenue has impacted major technology stocks on Wall Street, including Nvidia, Oracle, and Microsoft. Reports from the Financial Times indicated that OpenAI’s annualized revenue was near $50 billion as of late September, which is approximately $20 billion less than previous estimates suggested.

The discrepancy is attributed to a difference in accounting methods rather than a loss of actual revenue or missed targets. The higher $70 billion estimate previously used by investors was based on a specific calculation method intended to make OpenAI’s figures comparable to its rival, Anthropic.

Following the news, the Nasdaq Composite fell by 1.25%, and the Philadelphia Semiconductor Index dropped by 3.4%.