Oracle and Microsoft shares fall after FT reports OpenAI ARR near $50B, below earlier $70B figure

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Summary · why it matters

Oracle and Microsoft shares declined sharply on Thursday after the Financial Times reported that OpenAI's annualized recurring revenue was significantly less than previously reported. The FT said OpenAI's annualized recurring revenue, or ARR, was approaching $50B at the end of September, citing people familiar with the matter, while Axios reported late last month that OpenAI's ARR had approached $70B. Oracle shares fell more than 6%, Microsoft fell 0.5%, and Nvidia, which has supplied chips to OpenAI and has invested in the company, fell 2%. Other artificial intelligence-linked stocks, including CoreWeave and Nebius, also saw notable declines. OpenAI did not immediately respond to a request for comment from Seeking Alpha.

Impact on assets 5

Artificial Intelligence▼
Microsoft Corporation
MSFT
▼ NegativeDemandrelevance

Microsoft fell after the FT reported OpenAI's ARR near $50B, below the earlier $70B figure, clouding its key AI partner's demand outlook.

Nebius Group N.V.
NBIS
▼ NegativeDemandrelevance

Nebius, an AI-linked stock, declined on the report of softer-than-expected OpenAI recurring revenue.

NVIDIA Corporation
NVDA
▼ NegativeDemandrelevance

Nvidia fell as the lower OpenAI ARR figure raised doubts about demand from a major chip customer and investee.

Cloud & Digital Infrastructure▼
Oracle Corporation
ORCL
▼ NegativeDemandrelevance

Oracle shares dropped over 6% as the FT's lower OpenAI ARR figure undercuts the AI demand narrative tied to its cloud business.

Off-coverage companies 1

OpenAIi
Private± Mixedrelevance