Cloudflare Stock Slides As Global Outage Knocks X, ChatGPT Offline

Cloudflare

Cloudflare

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A global outage struck internet infrastructure giant Cloudflare Inc (NYSE:NET) on Tuesday.

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Downdetector showed that reported issues crossed the 10,800 mark on Tuesday with 62% users reporting issues related to server connection, 28% related to website and 11% related to hosting.

Investors reacted negatively to the news, selling off Cloudflare stock and driving shares down more than 5% in premarket trading. Cloudflare shares were down about 3% at last check, according to Benzinga Pro.

Also Read: Cloudflare Soars 71% In 2025, Crushing Market Performance

The outage knocked major platforms offline for users worldwide, disabling access to services including OpenAI's ChatGPT. The number of issues reported reached close to 2,000.

Elon Musk's social media platform X also faced disruptions, according to Downdetector. The number of issues reported reached close to 13,000 at the peak.

Cloudflare, which secures and manages traffic for roughly 20% of the web, attributed the failure to a "spike in unusual traffic" that began around 6:20 a.m. ET. The company quickly mobilized an "all hands on deck" response to investigate the errors and has since deployed a fix to restore service. OpenAI confirmed the impact on its status page, blaming the downtime for ChatGPT and its video tool Sora on a "third-party service provider."

NET Price Action: Cloudflare stock is trading lower by 3.60% to $194.93 at last check Tuesday, according to Benzinga Pro.

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