Nvidia, Oracle, CoreWeave, and other AI stocks fell after a report that OpenAI's annualized revenue at September's end was $20B less than previously reported

Investments in AI companies may now require greater scrutiny of revenue reporting standards, impacting future valuations and stock performance.

AI-focused stocks, including Nvidia, Oracle, and CoreWeave, experienced a decline following a report that OpenAI's annualized revenue at the end of September was significantly lower than previously stated. CNBC confirmed that OpenAI reported approximately $50 billion in annualized revenue, a figure $20 billion less than the widely circulated $68 billion figure from late last month. A source indicated that the earlier $68 billion number incorporated gross revenue from OpenAI's partners, a metric used for comparison with competitors like Anthropic. The update emerged as OpenAI faces scrutiny to justify its substantial valuation ahead of a potential 2027 IPO and ongoing discussions for a new funding round.

The correction in OpenAI's reported revenue suggests a potential overestimation of growth or a different accounting practice that inflated previous figures. This discrepancy could signal a need for more standardized reporting across the booming AI sector, especially as companies like OpenAI prepare for public markets and large funding rounds. Investors will likely become more cautious, demanding clearer breakdowns of revenue streams and a more conservative approach to projections when evaluating AI companies.

The market's reaction highlights the sensitivity to revenue multiples and growth rates within the AI industry, particularly for companies closely tied to foundational model providers. This event could lead to a broader reassessment of how AI company valuations are constructed, potentially favoring those with more transparent and verifiable revenue models. Investors might also look for assurances that reported figures are not artificially boosted by partner revenue to meet aspirational targets.