Seoul Stocks Open Lower as OpenAI Revenue Concerns Weigh, Oil Prices Rise

SEOUL, April 29 (Yonhap) -- Seoul stocks opened lower Wednesday as a report on OpenAI's poorer-than-expected performance renewed concerns over the artificial intelligence (AI) sector and rising oil prices. The benchmark Korea Composite Stock Price Index (KOSPI) fell 5.93 points, or 0.09 percent, to 6,635.09 in the first 15 minutes of trading. Overnight, major stock indexes on Wall Street lost ground as concerns over the AI sector reemerged following a report warning that ChatGPT maker OpenAI was falling short of revenue and user targets. The Wall Street Journal said in a report published Tuesday (U.S. time) that some executives at OpenAI are worried that the company "might not be able to pay for future computing contracts if revenue doesn't grow fast enough," citing insiders familiar with the matter. Brent crude for June delivery rose 2.8 percent to close at over US$111 per barrel, as peace talks between the U.S. and Iran remain stalled. U.S. President Trump is said to be "unhappy" with the latest proposal from Iran to end the war, according to reports. Iran had proposed a mutual reopening of the Hormuz Strait, a key international oil route, and holding off nuclear conversations. Overnight, the United Arab Emirates (UAE) said it is leaving the Organization of the Petroleum Exporting Countries (OPEC) next month. The UAE's exit from the oil cartel may not have an imminent impact on oil prices due to the closure of the strait. In Seoul, large-cap shares were trading mixed. Market top-cap Samsung Electronics inched down 0.9 percent, while its chipmaking rival SK hynix moved up 0.08 percent. Top carmaker Hyundai Motor fell 0.36 percent, battery maker LG Energy Solution dipped 0.85 percent, and defense giant Hanwha Aerospace added 3.23 percent. The Korean won was trading at 1,472.8 won against the U.S. dollar, up 0.8 won from the previous session's close.