OpenAI Misses Expectations - Should Tech Investors Worry?
4/28/202620 min
OpenAI reportedly missed its own growth and revenue expectations recently, and shares of Oracle and other companies with large deals with the AI giant are trading lower. In this episode, the team discuss the OpenAI news and much more. Tyler Crowe, Matt Frankel, and Lou Whiteman discuss:
- OpenAI's disappointing growth and what it means for tech investors
- Whether OpenAI and its rivals will be able to scale to profitability anytime soon
- General Motors' latest earnings and why Matt is such a big believer
- Whether investors should take the time to vote their shares Companies discussed: ORCL, CRWV, GM, F, GOOGL, GOOG Host: Tyler Crowe Guests: Matt Frankel, Lou Whiteman Engineers: Kristi Waterworth, Dan Boyd Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode. Learn more about your ad choices. Visit megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices
Clips
Transcript preview
First 90 secondsTyler Crowe· Host0:00
[upbeat music] OpenAI jitters on Motley Fool's Hidden Gems Investing podcast. [upbeat music] Welcome to Motley Fool Hidden Gems Investing. I'm Tyler Crowe, and with, uh, my longtime colleagues and Fool contributors, Lou Whiteman and Matt Frankel. Earnings are kicking up. Uh, Mag Seven have not reported yet, so we're gonna take a quick pause to- not to talk about Mag Seven earnings, although that is probably gonna be on later shows this week. Instead, we wanna start today talking about OpenAI and some struggles that were released in The Wall Street Journal. We're gonna talk General Motors' earnings, as well as hitting a mailbag question that we got earlier in the week. But like I said at the top, we're gonna start with OpenAI. There was a Wall Street Journal article that came out either last night or this morning that was reporting that OpenAI isn't meeting some of its user revenue goals, and it's making all that spending on compute power that we've been talking about for the past several weeks, months, even a couple years, it's getting harder to swallow. And there's been some knock-on effects on the market as well. Shares of companies that, with close ties to OpenAI are down on the news. I'm thinking companies like Oracle and CoreWeave. Now, guys, I'm gonna ask you, uh, Lou, Matt, I'm gonna ask you guys your thoughts on this in a minute, but this is what stood out to me, is that CEO Sam Altman is trying to move towards an IPO somewhat aggressively. But the company raised $122 billion less than a month ago, and I find it odd that a company that has raised so much money recently