"OpenAI isn't just burning through cash. It's lighting an entire mountain of money on fire. But since it's not a publicly traded company, the extent of that mountain remains difficult to gauge. But clues periodically emerge: as the Financial Times reports, for instance, the company recently signed a staggering $250 billion rental agreement with Microsoft - as well as a $38 billion contract with Amazon, less than a week later."
"According to HSBC, whose software and services team issued an update to its financial model of OpenAI, the company will be spending a nauseating $620 billion per year on renting data center capacity to power its AI models alone. That's despite only a third of the total contracted amount of 36 gigawatts actually scheduled to come online before 2030."
"Whether OpenAI will be able to pay its bills in the upcoming years remains hazy at best. According to HSBC, the company will need to reach three billion ChatGPT users by 2030, a steep goal considering userbase growth is already plateauing. According to CEO Sam Altman, the company has around 800 million weekly active users."
OpenAI has signed massive cloud rental agreements, including a $250 billion deal with Microsoft and a $38 billion contract with Amazon. HSBC estimates OpenAI will spend $620 billion per year renting data center capacity to power its AI models, despite only a third of the contracted 36 gigawatts scheduled to be online before 2030. Lenders expect blockbuster revenue growth, creating enormous pressure to achieve unprecedented business results. Experts warn of an AI bubble that could threaten broader economic stability if it bursts. Competition from Google’s Gemini 3 and projected market-share declines add further financial risk while user-growth is plateauing.
Read at Futurism
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