AI stocks tumble as OpenAI’s revenue falls short of expectations
AI and technology stocks experienced a sharp decline after a report revealed that OpenAI’s annualized revenue is significantly lower than previously believed. The revelation, which sent shockwaves through the market, has raised questions about the company’s valuation and the broader sustainability of the AI sector.
Editor, Lazyfounder
30 SEC SUMMARY
- AI and tech stocks fell sharply after reports revealed OpenAI’s annualized revenue is significantly lower than previously believed.
- OpenAI’s valuation of $852 billion is under scrutiny as its revenue growth faces investor skepticism.
- Major indices like the Nasdaq and S&P 500 declined, with tech stocks like Nvidia, Intel, and Oracle experiencing notable losses.
- Competitor Anthropic is reportedly seeking a $2 trillion valuation for its IPO, despite generating only $4.6 billion in revenue in 2025.
- The broader AI industry faces questions about sustainability and enterprise adoption amid market volatility.
TABLE OF CONTENTS
KEY HIGHLIGHTS
- OpenAI’s annualized revenue was reported as approaching $50 billion, down from a previously reported $68 billion.
- The Nasdaq index fell 1.25%, its worst single-day performance since mid-August, while the S&P 500 declined 0.5%.
- Major tech stocks, including Nvidia (-2.9%), Intel (-5.3%), Oracle (-5.5%), and CoreWeave (-8%), experienced significant declines.
- Anthropic is reportedly seeking a $2 trillion valuation for its IPO, despite generating $4.6 billion in revenue in 2025 and losses exceeding $42 billion.
- OpenAI delayed its IPO to 2027, citing ongoing debates around AI safety and valuation concerns.
AI stocks slide on OpenAI revenue disclosure
AI and technology stocks experienced a sharp decline following a report by SiliconANGLE that OpenAI’s annualized revenue is significantly lower than previously believed. The company’s revenue run rate was reported as approaching $50 billion, a notable drop from the $68 billion figure circulated two months ago. According to SiliconANGLE, the earlier figure included gross revenue from OpenAI’s partners, while the $50 billion figure reflects net revenue.
The report triggered a broader sell-off in tech stocks, with the Nasdaq index falling 1.25%, its worst single-day performance since mid-August. The S&P 500 also declined 0.5%, driven by losses in major tech companies. OpenAI, which confidentially filed its IPO prospectus with the U.S. Securities and Exchange Commission in June, is now facing pressure to justify its $852 billion valuation.
Market reaction and broader impact
The market downturn extended beyond OpenAI, with several prominent tech stocks experiencing significant losses. Oracle Corp. fell 5.5%, Intel Corp. declined 5.3%, and Nvidia Corp. dropped 2.9%. CoreWeave Inc., a cloud infrastructure provider, saw an 8% decline, while Advanced Micro Devices Inc. and Broadcom Inc. each slipped 4%. Super Micro Computer Inc. fell nearly 5%.
The decline in AI-related stocks reflects growing investor skepticism about the valuations of high-profile AI companies. OpenAI’s decision to delay its IPO to 2027, citing ongoing debates around AI safety, has further fueled concerns about the company’s path to profitability and long-term sustainability.
Anthropic’s ambitious IPO plans
While OpenAI faces scrutiny, competitor Anthropic is reportedly eyeing a $2 trillion valuation for its upcoming IPO, potentially as soon as November 9. The company, which generated $4.6 billion in revenue in 2025, is projected to reach an annualized revenue run rate of over $65 billion. However, it also reported losses exceeding $42 billion, raising questions about its valuation.
A report by financial research firm New Constructs labeled Anthropic’s IPO as "the most ridiculous IPO of 2026" and estimated the company’s true value at $150 billion. Despite this, SiliconANGLE reported that Anthropic has gained stronger traction with enterprise customers compared to OpenAI, which may bolster its case for a higher valuation.
Recent developments in AI infrastructure
The recent market turmoil follows a period of rapid innovation in AI infrastructure. CoreWeave Inc., which saw an 8% decline in its stock price, recently launched CoreWeave Forge, a full-stack AI cloud platform designed to streamline AI improvement loops for enterprises. The platform includes reinforcement learning capabilities and cross-region write support for AI object storage, aimed at enhancing GPU utilization and accelerating post-training workflows.
CoreWeave has also partnered with Caterpillar Inc. to advance "physical AI" for construction machinery, leveraging its GPU capacity to reduce training times for autonomous equipment. These developments highlight the growing demand for specialized AI infrastructure, even as market sentiment fluctuates.
Developing: what is not yet confirmed
The following is reported but has not been independently confirmed.
Some claims in the SiliconANGLE report remain unverified, including specific revenue figures and growth metrics for OpenAI and Anthropic. For instance, OpenAI’s reported 77% growth in annual revenue run rate and 107% growth in its enterprise business have not been independently confirmed. Similarly, the timing and valuation targets for Anthropic’s IPO are based on market speculation and have not been officially verified by the company.
Investors and analysts are closely watching how these developments will impact the broader AI sector, particularly as companies like OpenAI and Anthropic navigate regulatory scrutiny, valuation challenges, and market volatility.
What this means
Lazyfounder analysis — our interpretation, not reported fact.
This market reaction underscores the growing unease among investors about the sustainability of sky-high valuations in the AI sector. For founders and operators, the key takeaway is that revenue growth—especially when tied to enterprise adoption—is increasingly critical to justifying valuations. OpenAI’s delay in going public suggests that even well-funded companies are not immune to market scrutiny, particularly when revenue figures fail to meet expectations.
For startups in the AI space, this moment serves as a reminder that hype alone is insufficient to sustain investor confidence. Demonstrating clear paths to profitability, realistic growth projections, and strong enterprise traction will be essential to weathering market volatility and securing long-term funding.
Key takeaways
- Investor sentiment in AI is fragile: Even minor revenue discrepancies can trigger significant market volatility, particularly for high-profile companies.
- Enterprise adoption matters: OpenAI’s and Anthropic’s focus on enterprise growth reflects a broader industry trend where commercial viability is increasingly tied to business use cases.
- Valuations are under the microscope: Founders must prepare for heightened scrutiny of their financials, especially if they are eyeing public markets or venture funding.
- Market timing is everything: OpenAI’s IPO delay highlights the risks of going public amid regulatory uncertainty and shifting investor priorities.
- Competition is intensifying: Anthropic’s aggressive valuation targets and enterprise traction suggest that OpenAI will face stiff competition in the race to dominate the AI market.
FAQ
Why did AI stocks fall so sharply?
AI stocks declined after a report revealed that OpenAI’s annualized revenue is significantly lower than previously believed. This discrepancy raised concerns about the company’s valuation and the broader sustainability of AI sector growth, leading to a sell-off in tech stocks.
How does OpenAI’s revenue compare to its valuation?
OpenAI’s reported annualized revenue of nearly $50 billion is far below its $852 billion valuation. Investors are questioning whether the company’s growth trajectory can justify its valuation, especially as it prepares for an IPO.
What is Anthropic’s IPO valuation target?
Anthropic is reportedly seeking a $2 trillion valuation for its IPO, despite generating only $4.6 billion in revenue in 2025 and reporting losses exceeding $42 billion.
How did major indices like the Nasdaq and S&P 500 perform?
The Nasdaq fell 1.25%, its worst single-day performance since mid-August, while the S&P 500 declined 0.5%. Both declines were driven by losses in tech and AI-related stocks.
Related on Lazyfounder
Sources
- SiliconANGLE · 2026-10-09
AI stocks crumble on report that OpenAI’s annualized revenue is much lower than previously believed
This story is an original summary drafted with AI by Lazyfounder from the reporting listed above and checked by automated validation. Facts are attributed to their original publishers; sections marked as analysis are Lazyfounder's. Where a source is in another language, facts were machine-translated and quotations are reported, not reproduced. Read the original coverage via the links, and see our AI policy and corrections policy.
About the author
Editor, Lazyfounder
Tarun Mottlia edits LazyFounders, covering Indian startups, funding rounds, AI and product launches. Every story on the site is AI-assisted and checked against its cited sources before publication.
More stories by Tarun MottliaGet the LazyFounder Brief
Startup, funding and AI news in a five-minute read. Join the early-access list.
