Oracle, CoreWeave shares drop after report flags OpenAI growth worries

Oracle and CoreWeave shares fell in premarket trading on Tuesday after the Wall Street Journal reported OpenAI has missed its goals for new users and revenue in recent months, raising concerns ‌over the ⁠ChatGPT ⁠creator's growth prospects.

OpenAI CFO Sarah Friar expressed concerns ​over the company's ability to pay for future computing ​contracts if its revenue did not grow fast enough, the report said, citing people ​familiar with the matter.

Shares of ⁠Oracle dropped ‌7.7% to $159.80 before the ​bell. The ​AI cloud firm is reported ⁠to have signed one of the biggest ​cloud deals with OpenAI, amounting to $300 ​billion in computing power over a period of five years.


CoreWeave's shares slid 7.4% to $104. The Nvidia-backed AI startup signed a $11.9 billion contract with OpenAI last month ‌to provide AI infrastructure.

Japan's SoftBank Group, a major investor in OpenAI, closed down almost 10% in ⁠Tokyo trading, while Arm Holdings was down 8.1%.

SoftBank had pledged a $22.5 billion funding commitment to OpenAI ​by year-end through cash-raising schemes, which included potentially tapping its undrawn margin loans borrowed against its ownership in Arm Holdings, sources told Reuters in December.