Key Takeaways
- ChatGPT failed to achieve OpenAI’s target of 1 billion weekly active users by year-end 2024
- The artificial intelligence firm fell short on several monthly revenue benchmarks in early 2025
- Chief Financial Officer Sarah Friar expressed concerns internally about financing future infrastructure agreements
- Oracle and CoreWeave shares declined 3.5% before market open; AMD slid 2.7%
- Competitors Anthropic and Google Gemini captured market share from OpenAI in specific segments
OpenAI’s inability to meet critical performance benchmarks is creating turbulence across AI-related technology stocks.
A Wall Street Journal article released Tuesday revealed that OpenAI failed to achieve its ambitious internal target of attracting one billion weekly ChatGPT users before 2025 began. The artificial intelligence company additionally underperformed on its yearly revenue projection and multiple monthly financial milestones during the opening months of this year.
The publication indicates that Google’s Gemini platform experienced substantial traction in late 2024, capturing portions of OpenAI’s customer base. Meanwhile, Anthropic established dominance in programming assistance tools and corporate sectors, intensifying competitive headwinds against OpenAI’s expansion trajectory.
Equity prices for Oracle and CoreWeave retreated 3.5% during Tuesday’s pre-opening session. Advanced Micro Devices experienced a 2.7% decline. These corporations have anchored substantial portions of their strategic roadmaps to anticipated demand for artificial intelligence computing resources.
Oracle disclosed intentions earlier in 2025 to secure $45 to $50 billion in capital for cloud infrastructure expansion. The company pointed to committed orders from major clients including OpenAI, Meta, and Nvidia as rationale for the investment. CoreWeave projected capital expenditures between $30 and $35 billion for 2026, representing more than twice its 2025 spending levels.
IPO Readiness Under Scrutiny
OpenAI CFO Sarah Friar has cautioned internal leadership privately that the organization might encounter difficulties securing funding for upcoming computing infrastructure commitments if revenue acceleration remains sluggish, according to the Journal’s reporting. Board members have similarly intensified their examination of data facility transactions and challenged CEO Sam Altman’s aggressive pursuit of additional processing capacity.
Friar has separately raised questions regarding OpenAI’s preparedness to satisfy the financial disclosure and governance requirements associated with publicly traded status. Altman has publicly indicated his intention to pursue an initial public offering by the conclusion of 2026.
Altman and Friar both disputed the Journal’s reporting. In a collaborative response, they characterized any implication of internal discord or reduced investment in computing infrastructure as “ridiculous.” They affirmed being “totally aligned on buying as much compute as we can.”
Financial Outlook and Constraints
OpenAI completed its most substantial capital raise to date, securing $122 billion in fresh investment. Nevertheless, the organization anticipates depleting these resources within a three-year timeframe, even under scenarios where revenue targets are successfully achieved. Portions of the capital infusion carry stipulations tied to particular partnership arrangements.
The company has confronted elevated subscription cancellation rates, introducing additional uncertainty for stakeholders and management as the potential public listing approaches.
Friar and fellow executives have advocated for enhanced budgetary restraint and operational efficiency, occasionally creating friction with Altman’s growth-oriented strategy, the report indicates.
OpenAI’s primary infrastructure collaborators, notably Oracle and CoreWeave, have both pledged to dramatically increase expenditures in 2026 based partially on projected requirements from OpenAI.
