Oracle shares dropped by over 5% on October 8 following a report regarding OpenAI's annualized revenue. The decline impacted other AI-related stocks, with Broadcom falling nearly 4%, Nvidia dropping more than 2%, and Microsoft losing over 1%.
The market reaction stemmed from a Financial Times report indicating OpenAI's annualized revenue reached $50 billion by the end of September, contradicting previous estimates of $70 billion. This $20 billion discrepancy is attributed to different calculation methods rather than an actual loss in sales.
Oracle's financial outlook is tied to a five-year cloud computing agreement with OpenAI signed in September 2025, valued at $300 billion. This contract accounts for approximately 45% of Oracle's $664 billion backlog of future revenue.
Oracle currently faces high capital expenditures, reporting $28.5 billion in spending and $5.4 billion in negative free cash flow in its latest quarterly results. The company is actively seeking additional financing to support its AI chip infrastructure.
Other companies with significant exposure to OpenAI face potential market pressure. CoreWeave holds cloud contracts worth up to $22.4 billion, while Broadcom is arranging over $50 billion in financing for custom AI chips. AMD and Nvidia maintain multi-gigawatt infrastructure partnerships.
