Tech stocks slide following report on OpenAI missing key targets

Tech stocks slid Tuesday after The Wall Street Journal published a report warning that ChatGPT-maker OpenAI was falling short of revenue and user targets, fueling concerns about whether the tech industry’s multitrillion-dollar investment in AI will eventually pay off

Tech stocks slid Tuesday after The Wall Street Journal published a report warning that ChatGPT-maker OpenAI was falling short of revenue and user targets, fueling concerns about whether the tech industry’s multitrillion-dollar investment in AI will eventually pay off.

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Japanese tech conglomerate SoftBank led the declines, dropping 10% in Tokyo trading Tuesday. SoftBank has committed to investing $60 billion in OpenAI. Other names linked to OpenAI also saw significant sell-offs, including cloud computing providers CoreWeave, down 6%, and Oracle, down 4%.

Chipmaker Nvidia, which announced an agreement with OpenAI worth up to $100 billion last September, was down about 3%. That initial agreement has since been downsized to as much as $30 billion, the Financial Times reported in February.