OpenAI Misses 1B User, Revenue Goals for 2024

OpenAI missed its internal goal of reaching one billion weekly active ChatGPT users by the end of 2024, along with its annual revenue target and several monthly revenue benchmarks earlier in the year, according to company insiders.

The shortfalls, which included higher-than-expected subscriber churn, occurred amid intensifying competition. Google's Gemini platform gained significant traction in late 2024, capturing market share from OpenAI. Anthropic also advanced in coding tools and enterprise applications, contributing to OpenAI's challenges.

The news triggered immediate market reactions on Tuesday. Shares of Oracle and CoreWeave dropped 3.5 percent in premarket trading, while Advanced Micro Devices fell 2.7 percent. These companies have tied major expansion plans to anticipated AI infrastructure demand from OpenAI and others. Oracle announced earlier this year plans to raise between 45 billion and 50 billion dollars for cloud infrastructure growth, citing commitments from clients including OpenAI, Meta, and Nvidia. CoreWeave projected capital expenditures of 30 billion to 35 billion dollars for 2026, more than double its 2025 levels.

Internally, Chief Financial Officer Sarah...