OpenAI Misses Expectations - Should Tech Investors Worry?

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.3 • 3.1K Ratings

🗓️ 28 April 2026

⏱️ 20 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

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

Transcript

Click on a timestamp to play from that location

0:00.0	Open AI jitters on Motley Fool's Hidden Gems Investing podcast.
0:09.6	Welcome to Motleful Hidden Gems Investing.
0:11.6	I'm Tyler Crow and with my longtime colleagues and Fool Contributors, Lou Whiteman and Matt
0:16.9	Frankel, earnings are kicking up. Mag 7 have not reported yet, so we're going to take a quick pause and not to talk about mag 7 earnings, although it's probably going to be on later shows this week. Instead, we want to start today talking about open AI and some struggles that were released in the Wall Street Journal. We're going to talk General Motors' earnings, as well as hitting
0:38.2	a mailbag question that we got earlier in the week. But like I said, at the top, we're going to
0:41.5	start with Open AI. There was a Wall Street Journal article that came out either last night or this
0:45.9	morning that was reporting that Open AI isn't meeting some of its user revenue goals, and it's making
0:52.8	all that spending and compute power that we've been
0:55.7	talking about for the past several weeks, months, even a couple of years, it's getting
0:59.9	harder to swallow. And there's been some knock-on effects on the market as well, shares of
1:04.9	companies that with close ties, Open AI are down on the news, thinking companies like Oracle
1:09.0	and CoreWeave. Now, guys, I'm going to ask you,
1:12.7	Lou, Matt, I'm going to ask you guys your thoughts on this in a minute, but this is what stood
1:16.4	out to me is that CEO Sam Altman is trying to move towards an IPO somewhat aggressively.
1:21.6	But the company raised $122 billion less than a month ago, and I find it odd that a company that has raised so much
1:29.3	money recently is already preparing an IPO for what I would assume is more funding. I thought
1:35.0	that's what IPOs are for. So there's a bunch of other angles. I'm sure we can take here. You
1:39.9	guys all have your own takes. But let's start with this. Are companies that have hitched their
1:44.9	wagon to Open AI, like the oracles, like the coreweaves of world, in a little bit of stress
1:50.6	or trouble here based on what was said in this Wall Street Journal report? Matt, let's start with you.
1:56.7	Yeah, so nobody has been more skeptical about Open AI's longer-term revenue projections,
2:01.4	all these circular deals we're seeing among these AI companies. No one's been more skeptical
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from The Motley Fool, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of The Motley Fool and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.