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OpenAI has missed important internal revenue and user growth targets, the Wall Street Journal reported. CFO Sarah Friar expressed concerns about the company’s ability to fulfill future compute contracts if revenue can’t keep up, according to the report. The news comes ahead of a highly anticipated IPO later this year as the company tries to control its costs and streamline its products by scrapping “side quests.”

Thanks to CEO Sam Altman’s spending spree last year, the company is on the hook for $600 billion in future compute commitments. But the AI behemoth missed its goal of reaching $1 billion weekly active users for ChatGPT as well as multiple monthly revenue targets earlier this year as marquee products from rivals like Anthropic and Google grew in prominence, according to the report.

OpenAI’s business slowdown has spooked investors. Shares of prominent OpenAI investors and partners like Oracle, Nvidia, Microsoft, CoreWeave and Softbank fell on Tuesday, Forbes reported. OpenAI spokesperson Steve Sharpe called the Journal’s report “clickbait” in a statement to Forbes. Sharpe said OpenAI’s business is “firing on all cylinders,” adding its consumer strength is starting to show up in revenue and its enterprise business is “in the best place it has ever been.”

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