AI boom hits a wall on Wall Street as OpenAI cuts fundraising target while Meta gets a credit warning over its cash flow, spending and monetization
Source: Fortune ·
S&P Global cut its outlook on Meta to "negative" from "stable" late Friday.
From the source
The seemingly endless gusher of capital that’s been showered on Silicon Valley during the AI boom may be coming to an end soon as Wall Street pushes back on massive spending plans. Following a brutal selloff in tech stocks over the past week, OpenAI slashed the target on its latest fundraising round to $20 billion from $30 billion, sources told the Financial Times. That also cut its expected valuation to $1.25 trillion from $1.4 trillion. The funding round was also upstaged by Anthropic, according to the report, as OpenAI’s arch-rival prepares to go public next month. Ahead of its IPO, Anthropic filed an S-1 on Monday that showed revenue has soared and its cash flow turned positive in the first half of this year. OpenAI didn’t immediately respond to a request for comment. The timing couldn’t have been worse. Quarterly earnings reports from hyperscalers this week spooked investors. Alphabet saw its cash flow sink deeper into negative territory in the third quarter, with the Google…