"According to HSBC, OpenAI's free cash flow (the money left over after all costs have been paid) will amount to approximately $282 billion by 2030. An additional $26 billion will come from Nvidia's commitments and the sale of AMD shares. Add to that $24 billion in unused debt and equity facilities and $17.5 billion in available cash. That sounds like a lot of money, but it's not enough."
"HSBC notes that OpenAI has closed two major deals in recent months: a $250 billion cloud computing deal with Microsoft and a $38 billion deal with Amazon. These contracts add four gigawatts of computing power, bringing the total to 36 gigawatts. The annual rental price amounts to $620 billion. Only a third of that capacity is expected to be available by the end of this decade."
HSBC projects OpenAI's free cash flow will be about $282 billion by 2030, plus $26 billion from Nvidia commitments and AMD sales, $24 billion of unused facilities, and $17.5 billion in available cash. These funds still fall short of the $792 billion required for data centers through 2030, leaving a $207 billion shortfall, rising to $217 billion with a $10 billion buffer. Cloud deals with Microsoft ($250 billion) and Amazon ($38 billion) bring capacity to 36 gigawatts but create annual rental costs of $620 billion, much of which won't be operational by decade's end. User growth and higher conversion to paid plans are essential to close the gap.
Read at Techzine Global
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