OpenAI sees burning through US$278 billion by 2030: FT
The ChatGPT-maker is investing heavily in computing power and expects expenses to outpace gains
OpenAI, the creator of ChatGPT, anticipates its negative free cash flow will reach a staggering US$278 billion between 2026 and the end of 2030, according to a Financial Times report. The figures were disclosed in a July company presentation to discuss a computing deal, as cited by a source with knowledge of the information. Despite projecting revenue growth from US$36 billion in 2026 to a monumental US$350 billion by 2030, OpenAI is investing significantly in computing power, expecting expenses to far surpass those gains.
Bloomberg reported on Tuesday that OpenAI has been engaging in preliminary discussions with potential investors regarding a new funding round, which, if successful, would value the company at over US$1.2 trillion. This comes ahead of an anticipated initial public offering (IPO) for the AI giant. However, OpenAI's chief executive officer, Sam Altman, has indicated that the IPO is still in the works and not set to occur in 2026.
Should OpenAI accept such a funding round, it could provide the flexibility to further delay the IPO by one or two quarters, as Bloomberg reported. Furthermore, the additional capital might also be used to facilitate more mergers and acquisitions, another possibility being considered by OpenAI.
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