Key Takeaways
- ChatGPT failed to achieve OpenAI’s target of 1 billion weekly active users by year-end 2024
- Revenue projections fell short across multiple months in early 2024
- CFO Sarah Friar raised internal concerns about funding future infrastructure commitments
- Premarket trading saw Oracle and CoreWeave decline 3.5%; AMD fell 2.7%
- Competitors like Anthropic and Google Gemini captured market share from OpenAI
OpenAI’s inability to meet critical growth benchmarks is creating turbulence across AI infrastructure stocks.
A Wall Street Journal investigation released Tuesday revealed that OpenAI failed to achieve its ambitious target of one billion weekly ChatGPT users by year-end 2024. The artificial intelligence company also underperformed on its yearly revenue projections and missed numerous monthly financial benchmarks during the first half of 2024.
The investigation indicates that Google’s Gemini platform experienced substantial growth in late 2024, capturing market share previously held by OpenAI. Meanwhile, Anthropic established dominance in developer tools and corporate sectors, further challenging OpenAI’s competitive position.
Tuesday’s premarket session witnessed Oracle and CoreWeave shares dropping 3.5%. Advanced Micro Devices experienced a 2.7% decline. All three companies have integrated AI infrastructure growth into their strategic roadmaps.
Earlier in 2024, Oracle disclosed intentions to secure $45 to $50 billion in capital for cloud infrastructure expansion. The company justified this massive investment by pointing to confirmed demand from major clients, including OpenAI, Meta, and Nvidia. CoreWeave projected capital expenditures of $30 to $35 billion for 2026, representing more than double its 2025 spending.
IPO Readiness Under Scrutiny
OpenAI CFO Sarah Friar has reportedly expressed internal reservations about the company’s capacity to finance upcoming computing infrastructure agreements unless revenue acceleration occurs, according to the Journal’s reporting. Board members have intensified their examination of data center investments and questioned CEO Sam Altman’s aggressive push for expanded computing capabilities.
Friar has also allegedly communicated doubts regarding OpenAI’s preparedness for the rigorous financial disclosure requirements that accompany public company status. Altman has publicly stated his intention to take OpenAI public before the end of 2026.
Altman and Friar issued a unified response challenging the Journal’s characterization. In their joint statement, they dismissed any notion of internal conflict or reduced computing investment as “ridiculous.” They emphasized being “totally aligned on buying as much compute as we can.”
Financial Outlook and Challenges
OpenAI completed its most substantial fundraising effort to date, securing $122 billion in fresh capital. Nevertheless, internal projections indicate this capital will be depleted within a three-year timeframe, even assuming successful achievement of revenue objectives. Certain portions of the funding carry conditions tied to specific partnership arrangements.
The organization has experienced elevated rates of subscriber attrition, introducing additional uncertainty for investors and leadership as they evaluate public market timing.
According to the report, Friar and fellow executives have advocated for stricter financial oversight and expenditure management, occasionally creating friction with Altman’s growth-oriented strategy.
OpenAI’s primary infrastructure partners, particularly Oracle and CoreWeave, have both announced substantial spending increases planned for 2026, with projections partially based on anticipated OpenAI demand.
