7/103 sources · 2 publishersUpdated Oct 9, 01:11 UTC
Broadcom falls after OpenAI clarifies revenue metric
Broadcom shares closed 4.4% lower on Thursday after OpenAI told potential investors that its annualized revenue was roughly $50 billion at the end of September, below the $68 billion previously reported. OpenAI said the earlier figure included gross revenue from partners, while Broadcom is reportedly helping arrange funding for OpenAI's purchases of its AI chips.
Why it matters
The revised OpenAI metric may affect investor assessments of the customer's ability to fund future chip purchases. Broadcom's reported role in arranging roughly $50 billion of financing links its sales outlook more closely to OpenAI's funding capacity.
Key facts
- 1Broadcom was down 4.4% at Thursday's close after falling as much as 5.1% intraday. finance.yahoo.com
- 2OpenAI put its annualized revenue at roughly $50 billion at the end of September. finance.yahoo.com
- 3The earlier $68 billion figure included gross revenue generated by OpenAI partners, according to the company's updated investor presentation. finance.yahoo.com
- 4Broadcom was reportedly seeking roughly $50 billion of financing for OpenAI's AI-chip purchases. finance.yahoo.com
- 5Broadcom and OpenAI are developing a custom AI processor called Jalapeno, which is expected to be deployed later this year. finance.yahoo.com
Summary written by AlphAI from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.