Nvidia CEO Jensen Huang says fears over OpenAI and Anthropic revenue are overblown after AI stocks sold off in October. He argues that frontier labs make up only a quarter to one-third of Nvidia's chip demand.
AI stocks have taken a hit in October, as higher interest rates and skepticism over returns on AI spending fed a sell-off. Nvidia CEO Jensen Huang now says the reaction goes too far.
Revenue leaks rattle AI stocks
On Oct. 8, the Financial Times reported that OpenAI told investors it had reached $50 billion in annualized recurring revenue. That fell well short of the $70 billion figure leaked in September, though the gap was later addressed as a discrepancy in accounting methods.
Then Anthropic told investors it had made roughly $16.8 billion in revenue in Q3, against $4.6 billion in all of 2025. Yet a leak in August had put Anthropic at a $65 billion ARR at the end of July, so the $67.2 billion Q3 annualized figure would indicate a sharp slowdown.
The two leaks, along with rising inflation, sent AI-related stocks, especially semiconductors, into a tailspin, according to the article.
Huang points to demand beyond two labs
Last Thursday, Huang appeared on a podcast with venture capitalist Brad Gerstner, who asked whether Anthropic and OpenAI could generate enough revenue to keep the AI build-out going. Huang first pointed to other labs, including xAI's Grok, Meta's Muse agent and Alphabet's Gemini, as all "doing great" and growing.
He also said frontier labs account for only a quarter to one-third of Nvidia's chip demand. Another third comes from general computing, and the final third from new and emerging AI-related companies.
Author links Anthropic slowdown to competition
The Motley Fool's author argues that Anthropic's slowdown more likely reflects competition than weaker AI spending. Axios reported that OpenAI's revenue run rate grew by roughly 70% in Q3, above Anthropic's 46% quarter-over-quarter growth.
Early Q3 earnings reports, especially from Taiwan Semiconductor Manufacturing, suggest chip demand remains strong. The author adds that commentary from AI users may matter more to chip stocks this earnings season than the chipmakers' own results.
Source: Motley Fool
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