Tech stocks fell on Friday after the New York Times reported that OpenAI is likely to delay its public offering until 2027, according to three people familiar with the situation. Oracle shares dropped 1.5%, CoreWeave fell 1.9%, and SoftBank, listed in Tokyo, closed 13% lower in Asian trading. These companies have the most financial exposure to OpenAI. Below, we look at what a delayed IPO could mean for each company and how SpaceX’s recent decline factors in.
OpenAI executives are reportedly worried about the weak market and the sharp drop in SpaceX stock, which has fallen 24% in the last six trading sessions after its record IPO earlier this month. SpaceX’s rough start, seen as a sign of how the market values AI-focused companies at high valuations, seems to be making OpenAI more cautious about when to go public. On June 9, OpenAI confirmed it had confidentially filed for an IPO but said it could be some time before the company actually goes public. OpenAI did not respond to requests for comment on Friday.
OpenAI’s partners have a lot at stake. Oracle has a $300 billion deal with OpenAI to build AI data centers through 2030, which makes up more than half of Oracle’s cloud computing backlog. If OpenAI delays its IPO, there is more uncertainty about whether it can keep up with this spending. CoreWeave also has a multi-year partnership with OpenAI worth up to $22 billion. If OpenAI’s growth slows or it takes longer to raise money, CoreWeave’s future revenue becomes less certain.
SoftBank has invested about $65 billion in OpenAI, which is around 13% of the company’s total ownership as of February. The Japanese conglomerate is also working with Oracle and OpenAI on the $500 billion Stargate AI infrastructure project, which increases its exposure to any changes in OpenAI’s plans.
