AI stocks crumble on report that OpenAI’s annualized revenue is much lower than believed

Technology stocks fell lower today following a report that artificial intelligence giant OpenAI Group PBC’s annualized revenue this year is about $20 billion less than what was previously reported by the media, sending shockwaves through the industry. A report today by the Financial Times revealed that OpenAI recently told prospective investors that its annualized revenue was approaching $50 billion – far below the $68 billion figure that was widely reported two months ago. The discrepancy between the reports appears to have rattled investors Many had already been questioning whether the demand for AI will be strong enough to justify the sky-high valuations of OpenAI and its rival Anthropic PBC, which are both gearing up for initial public offerings to capitalize on the AI boom.