The AI race may be decided by financing—not just better chips

The AI race may hinge on financial ties rather than superior chips, a shift that's reshaping the industry landscape. Broadcom is reportedly negotiating a $30 billion debt raising to aid OpenAI in acquiring chips they co-develop. Anthropic is reportedly preparing for the 2028 election, while OpenAI and Anthropic reported their financials, revealing annualized revenues approaching $50 billion and $60 billion, respectively.

Nvidia has partnered with six finance firms to secure over $500 billion in capital to finance customers' AI infrastructure. AMD has provided OpenAI and Meta with warrants for up to 320 million shares at a penny each to give customers a stake in its success. These financing strategies aren't novel; manufacturers like General Motors and General Electric have historically facilitated customers' purchases through financing and infrastructure investments.

However, the scale and uncertainty surrounding the core product are unprecedented. As Nvidia, Broadcom, and AMD compete through financing and equity incentives, customers must question the pricing and shopping options. Before aligning with an AI provider, leaders should grasp the ecosystem behind it, including committed capital, loss bearers, and investment or purchasing agreements.

The financing rests on the labs' revenue growth, which is why the numbers are crucial. OpenAI and Anthropic's revenue figures have fluctuated, with OpenAI's annualized revenue reportedly reaching $50 billion, down from a previous $70 billion estimate. These financial shifts highlight the importance of understanding what's being committed, on what terms, and the consequences if things go awry. As AI startups prepare for IPOs, investors will demand greater clarity on what fuels the AI boom.