Nvidia, Oracle, CoreWeave and other AI stocks sink on OpenAI revenue report

So there has been a lot of attention around an accounting discrepancy as it was described in OpenAI's revenue numbers. The initial headline sent shock waves through the tech sector. It pulled down some of the chip names, the NASDAQ as well. The headline that got everyone's attention, OpenAI's revenue was about $20 billion lower than expected. The Financial Times reporting annualized revenue approaching around $50 billion at the end of September. That was compared to $70 billion. It was widely reported. I did confirm those numbers with a source. But importantly, the discrepancy from what I'm hearing was more about accounting than slowing demand, which is really what spooked the market. OpenAI in previous projections had included sales from what I'm hearing through cloud partners. Think of Amazon and Microsoft in new pitch decks for its latest funding round. I am now hearing they are excluding certain partners from revenue. It is considered a cleaner number when they go out for this fund raise. It is part of a $30 billion ongoing fund raise at a $1.4 trillion valuation according to sources that has been gaining momentum from what I'm hearing. No term sheet has been signed yet. But these AI companies are also widely using annualized revenue and their run rates to show growth rather than traditional public company metrics. So that can also make it harder for investors to get a full picture here. The knee-jerk reaction from the market yesterday was a reminder guys of how dependent this entire AI trade is right now on the growth of private AI companies. So any breadcrumb that revenue isn't keeping up tends to add to the bare case. AI companies could be overbuilding and then the demand isn't there. On top of all that and the question around chip demand, a lot of these tech names are investors in OpenAI and Anthropic. A lot of the biggest tech names again have a stake in these guys. So that adds to the the weakness and sort of the the knee-jerk reaction we saw.