Oracle slides 7.5% premarket on OpenAI link

Oracle shares fell sharply before the opening bell on Tuesday after a report said OpenAI had missed internal targets for user growth and revenue. (reuters.com) (cnbc.com) Reuters reported Oracle was down 7.7% to $159.80 in premarket trading. CoreWeave fell 7.4% to $104, and SoftBank closed down almost 10% in Tokyo. (reuters.com) The trigger was a Wall Street Journal report that OpenAI had recently fallen short of its own projections for new users and revenue. Reuters and CNBC both said the report raised questions inside OpenAI about whether future computing commitments can be funded if growth stays slower than planned. (reuters.com) (cnbc.com) Oracle sits near the center of that concern because it has been tied to one of the biggest cloud commitments in the sector. Reuters and CNBC said Oracle has a reported five-year agreement worth about $300 billion to supply OpenAI with computing power. (reuters.com) (cnbc.com) That agreement is part of Stargate, OpenAI’s long-term plan to line up giant U.S. data centers and power supplies for artificial-intelligence workloads. Data Center Frontier reported the Oracle-OpenAI piece of that buildout was described as 4.5 gigawatts of added U.S. capacity. (datacenterfrontier.com) (openai.com) The market reaction spread beyond Oracle because the same spending chain touches chipmakers, cloud contractors and OpenAI investors. CNBC said Broadcom fell 4%, Advanced Micro Devices dropped 3%, Nvidia lost more than 1%, and Qualcomm slipped 0.2%. (cnbc.com) OpenAI pushed back on the report. CNBC said the company called it “ridiculous” and said it remained aligned on buying as much compute as it could, while Oracle said adoption of OpenAI technology was still accelerating. (cnbc.com) Tuesday’s selloff showed how tightly Oracle’s AI trade is now linked to OpenAI’s growth rate. When investors questioned OpenAI’s demand, they also questioned the revenue and financing assumptions behind Oracle’s data-center expansion. (reuters.com) (datacenterfrontier.com)