OpenAI Cuts Fundraising Goal as S&P Flags Meta Negative Outlook
Fortune reported on thirty-first October that OpenAI lowered its fundraising target to $20 billion, while S&P Global downgraded Meta's outlook to negative, citing cash-flow pressure and uncertain AI monetisation. According to Reuters, the tech-heavy Nasdaq-100 could lose more than $2 trillion in market value this month as investors scrutinise AI investment returns and face higher borrowing costs. Seeking Alpha noted that Amazon, Microsoft, Alphabet and Meta posted solid third-quarter revenue gains, but heavy AI spending and negative free cash flow pushed their stock prices into correction territory. Fortune also reported that the five companies plan to spend up to $828 billion on AI-related infrastructure this year, a factor that contributed to the Nasdaq-100 valuation drop. The Globe and Mail said investors preferred Microsoft and Oracle over Alphabet because of cash-flow discipline, while Alphabet’s large capital outlays and slower search growth weighed on its shares.
Fox Business highlighted double-digit cloud revenue growth for Alphabet and Microsoft driven by AI services, with both firms planning higher capital spending to expand AI infrastructure. The Globe and Mail also recorded a 48% rise in Microsoft’s Azure revenue and a forecast of up to 50% cloud growth in the second quarter. Gizmodo reported Microsoft’s record $92. 3 billion revenue and voluntary exit offers affecting about 27% of its workforce.
