Oracle, CoreWeave Shares Drop on OpenAI Misses

Shares of Oracle, CoreWeave, SoftBank and other companies linked to OpenAI's AI infrastructure demand fell sharply in early trading Tuesday after reports revealed the ChatGPT maker missed several internal targets for user growth and revenue.

Oracle shares dropped as much as 7.6 percent in premarket trading, while CoreWeave declined up to 8 percent. SoftBank, one of OpenAI's largest investors with a 13 percent stake, sank nearly 10 percent in Tokyo. Other firms exposed to AI computing demand also slid, including Broadcom down 4 percent, Advanced Micro Devices down 3 percent and Nvidia down more than 1 percent.

The selloff stemmed from accounts that OpenAI fell short of its goal to reach 1 billion weekly active ChatGPT users and missed multiple monthly and annual revenue targets in recent months. Competition intensified as Google's Gemini chatbot gained market share, with ChatGPT's portion of generative AI web traffic dropping from 86.7 percent a year earlier to 64.5 percent in January, while Gemini rose from 5.7 percent to 21.5 percent. Rivals like Anthropic also captured ground in coding and enterprise AI segments, contributing to higher subscriber cancellations.