Share prices for companies linked to OpenAI declined on Tuesday, after a Wall Street Journal report said the start-up had missed multiple internal targets related to revenue and users in recent months.
Oracle’s shares closed down about 4 percent, while CoreWeave shares declined 5.8 percent.
Both companies have sealed massive deals with OpenAI to provide cloud infrastructure in the coming years, with Oracle reportedly having signed a deal amounting to some $300 billion (£222bn) over a period of five years.
Compute providers
CoreWeave is one of several companies that switched from providing computing resources for the cryptocurrency industry to focus on AI.
The firm signed an $11.9bn deal with OpenAI in March.
ARM Holdings, which counts OpenAI as a customer, closed nearly 8 percent lower.
SoftBank, which has sold holdings in Nvidia and T-Mobile to become a major investor in OpenAI, closed down nearly 10 percent in Tokyo.
The Journal report, which revived periodic concerns about how loss-making OpenAI will be able to pay for its hundreds of billions of dollars of infrastructure spending commitments, also affected the shares of chipmakers such as AMD, Broadcom and Nvidia with which the start-up has deals.
AMD closed down more than 3 percent, Broadcom was down more than 4 percent, and Nvidia was down 1.59 percent.
Missed targets
Optimism around AI helped Wall Street indices reach record highs earlier this month.
The Journal report said OpenAI chief financial officer Sarah Friar told other company leaders she is worried the company couldn’t pay for future computing contracts if it doesn’t grow fast enough.
Friar and OpenAI chief executive Sam Altman said in a joint statement they were “totally aligned” on compute purchasing strategy.
The missed goals reportedly included reaching one billion weekly active users for ChatGPT by the end of last year, a yearly revenue target for ChatGPT last year, defection rates among subscribers, and multiple monthly revenue targets this year amid competition with Anthropic.
