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AI Growth Fears Trigger Tech Stock Sell-Off

A tech selloff triggered by OpenAI report; companies dispute concerns while stocks fall

  • News of OpenAI missing internal targets and warning about sales momentum triggered a tech sector selloff.
  • CoreWeave clarified that OpenAI is a partner, but its customer base is diverse and demand still exceeds supply.
  • Despite the negative report, OpenAI stated its enterprise business is in its best-ever state and it is operating at full capacity.
  • Market panic dragged down stocks of NVIDIA, AMD, Broadcom, and Oracle, alongside CoreWeave.

U.S. technology stocks faced a sharp selloff after a report indicated OpenAI missed crucial performance targets and its CFO flagged funding concerns. Consequently, major AI infrastructure and chipmaker stocks plummeted in pre-market trading, with broader markets also feeling the pressure. Among the hardest hit was CoreWeave, which sank as much as 8% on Tuesday.

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However, CoreWeave quickly attempted to reassure investors by emphasizing its broad client roster. According to TheFly, the company told Bloomberg that OpenAI is not its sole customer, calling it a “terrific partner.” Meanwhile, the firm stated it continues to see demand exceeding supply across the AI ecosystem, particularly as inference scales. Its expanding client base reportedly includes Meta, Anthropic, Microsoft, Google, IBM, and others.

OpenAI also directly disputed the negative narrative in a statement to Forbes. The company labeled the report as “clickbait” and asserted it is “firing on all cylinders.” It highlighted that its enterprise business is in the best place it has ever been, directly countering the concerns about sales momentum. Retail sentiment on Stocktwits for CRWV remained bullish, with message volumes spiking nearly fourfold.

The panic dragged down other key players, including top chipmakers NVIDIA, Advanced Micro Devices, and Broadcom. Oracle, a primary cloud computing rival to CoreWeave, also saw significant losses. All these stocks pared only some of their initial declines as the trading session progressed. Despite the selloff, CRWV has outperformed the S&P 500 both this year and over the last twelve months.

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