Jensen Huang’s Nvidia Lost $200 Billion in Value After OpenAI’s Revenue Run Rate Came Up $18 Billion Below Expectations. Is This AI-Jitters Sell-Off a Buying Opportunity?
OpenAI changed the world four years ago when it launched its artificial intelligence (AI) model, ChatGPT, sparking an AI revolution that led to the emergence of multiple competing models. It recently postponed its plans to go public, which means investors don’t have access to its financial data beyond what it chooses to disclose. Since it’s not a public company, its growth rates aren’t directly relevant to investors, but many still track them to gauge the pace of AI development more broadly.
For example, if companies like OpenAI and rival Anthropic, the maker of the Claude AI model, are growing rapidly, they’ll likely need more data center processing power. That would be great news for Nvidia (NASDAQ: NVDA), which supplies a large fraction of the processors that power data centers.
Nvidia CEO Jensen Huang. Image source: Getty Images.
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