Report on OpenAI Revenue Hits the Chips, Musk vs. Altman Day 2, Earnings Parade Heats Up 4/28/26

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Jim Cramer (0:57)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (1:11)

Good morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 at the New York Stock Exchange. NASDAQ coming off a record close in the red though, with some worries about OpenAI's growth. Has Oracle, NVIDIA, AMD in the red. Some solid old economy earnings though today.

Oil near 100, close to the highest level since the ceasefire began. Retail gas 416, just a few cents from a multi-year high. Our roadmap this morning begins with the blue chip earnings parade. Coke, GM, UPS, all with results. We'll dig through those numbers.

David Faber (1:41)

Plus, OpenAI is reportedly missing some key targets for user numbers and revenue. That is dragging down some of the names, of course, that are relying on the spending from OpenAI.

A major shakeup for OPEC, the UAE saying that it is leaving the oil cartel. That will take place next month.

Carl Quintanilla (2:02)

Let's begin with OpenAI. The Journal Today reports the startup recently missed its own targets for new users and revenue, raising concern among some company leaders about whether it will be able to support its massive spending on data centers. Paper says that CFO Sara Fryer has told other company leaders she's worried OpenAI might not be able to pay for future compute if revenue doesn't grow fast enough. All that said, Jim, I don't think you're a fan of this piece.

Jim Cramer (2:27)

No, and look, first of all, I love good journalism. Good journalism is something that makes you feel like you're smarter than you were. I'm not as strong on journalism that I think is, that doesn't include the full story. You can include some quotes from Sam Altman and Sara Fryer and then just Sara Fryer CFO, just dismiss them wholeheartedly. I can't do that. The reason I can't do that, I don't know Sam at all. I don't know Mr. Altman at all. I know Sara Fryer from multiple years.

Sara Fryer has never stood me wrong. So I struggle. I struggle because Sara Fryer is telling me a different story. I don't know the reporter. I know Sara.

It's entirely possible that Sara, for the first time in her life, will hook up and say, you know what, I'm going to fool Cramer like nine ways this Sunday, make him look like an idiot, tell him that this article is right, and then I'm just going to pants him. I don't think, pants being the operative. I don't think that Sara is bagging me. So it's harder for me to reconcile. That's all I'm saying. It's harder for me to reconcile.

David Faber (3:33)

Probably will not be the last time that we have questions raised about OpenAI's ability to reach its revenue targets. Of course, the longer term question is, will it be profitable? Will it be able to make good on all of the enormous commitments it's made for securing compute around the world? Now, this is a company that did just raise $122 billion in the largest raise that anybody's ever seen for anything, not to mention a private company.

So that gives them certainly plenty of runway. We can all remember the recovery that took place and some of the names that are reliant on it. Typically, it is Oracle we go to first as being the public face of OpenAI to a certain extent, in terms of how you want to see that form, because that stock went up when they raised all that money, in part because Oracle's made commitments to spend as much as $300 billion building compute. In fact, yesterday, Jeff Blau from Related and Related Digital was with us, Jim, talking about $16 billion they've raised to build a data center for Oracle that is going to be providing the compute for OpenAI.