Dan Ives of Wedbush says OpenAI is ‘strongly positioned’

(SeaPRwire) –   Good morning. OpenAI has plans to invest up to $600 billion in compute resources by 2030, raising questions about its ability to generate sufficient revenue to match this expenditure.
 
A Wall Street Journal report indicates that OpenAI fell short of its internal goal of reaching 1 billion weekly active users for ChatGPT by the end of 2025. The company had achieved around 900 million weekly users as of February. The report also stated that OpenAI missed several monthly revenue targets earlier this year, with CFO Sarah Friar reportedly warning other executives that future computing contracts might be unaffordable without faster revenue growth. Both OpenAI CEO Sam Altman and Friar dismissed these claims as “ridiculous” in a statement to Reuters.

The financial markets responded widely to the report. Stocks connected to artificial intelligence, such as Oracle, CoreWeave, Nvidia, and AMD, declined on Tuesday. The Nasdaq 100 index fell approximately 1.5% as investor caution regarding AI spending increased following the OpenAI-related news.

When asked if the market selloff was justified, Dan Ives, a managing director at Wedbush Securities, stated, “We believe this is an overreaction, as OpenAI is strongly positioned.” He added, “We will take the other side of this bear thesis and be buyers of Oracle and other names impacted today.”

In a note released Tuesday morning, analysts from Wedbush expressed their belief that OpenAI is experiencing very robust demand from both consumer and enterprise customers. “We strongly disagree with the notion that growth is weakening,” the analysts wrote.

Rittenhouse Research commented in an X post on Tuesday that the WSJ article failed to consider this year’s launch of GPT-5.5 and the updated Codex model. OpenAI Newsroom responded: “We agree. The real leading indicators are clear: breakout Codex growth, enterprise offerings on every cloud, the only consumer app that matters, a compute strategy built to accelerate, and the best researchers in the world.”

Reports from February indicated that OpenAI forecasts its revenue will increase swiftly in the coming years, surpassing $280 billion by 2030.

At the end of March, OpenAI announced it had secured $122 billion in a funding round that values the company at $852 billion. “It’s a historic number, but for me, what matters more is what it represents,” OpenAI CFO Sarah Friar wrote in a LinkedIn post after the announcement. “We’re building the core infrastructure for AI, making it possible for anyone, anywhere, to build.”

Friar further noted that while models and products often receive attention, compute power is the fundamental engine. “With this funding, we can invest at the scale needed to deliver intelligence more efficiently to consumers, enterprises, and builders everywhere,” she said. “That’s the part that keeps me energized—not just what we build, but what others will build on top of it.”

The private company OpenAI is anticipated to seek an initial public offering as it faces growing competition from Google Gemini and Anthropic.

Sheryl Estrada
sheryl.estrada@.com