OpenAI's Wall Street Disconnect

Talk about out of touch with reality.

Investors slammed the tech sector on Tuesday, spurred in part by https://www.wsj.com/tech/ai/openai-misses-key-revenue-user-targets-in-high-stakes-sprint-toward-ipo-94a95273?mod=hp_lead_pos3">a Wall Street Journal report that OpenAI had missed some internal revenue projections.

Among the biggest to take a hit were two cloud firms that depend heavily on OpenAI for business: Oracle and CoreWeave, whose stocks fell 4% and 5.8%, respectively.

It seems investors were surprised by the idea that all might not be well at OpenAI. Have they not been paying attention?

After all, signs of dysfunction at the ChatGPT firm have been growing for a while.

For one thing, as The Information has reported several times, OpenAI didn’t reach its 1 billion weekly active user goal for the end of 2025 (https://www.theinformation.com/articles/openai-tops-25-billion-annualized-revenue-anthropic-narrows-gap?rc=9byxri">we recently reported the user number had reached 920 million).

The shortfall in user growth makes a corresponding shortfall in revenue entirely predictable.