"Companies supplying data centers, chips, and "compute" processing power to OpenAI have taken on about $96 billion in debt to fund their operations, according to an analysis by the Financial Times. The news highlights the AI sector's increasing reliance on debt and its growing dependence on loss-making AI startup OpenAI in particular.Currently, the revenues being generated by AI companies and many of the data center operators that are rapidly expanding in order to serve them, are nowhere near big enough to cover their build-out costs."
"OpenAI has made $1.4 trillion in commitments to procure the energy and computing power it needs to fuel its operations in the future. But it has previously disclosed that it expects to make only $20 billion in revenues this year. And a recent analysis by HSBC concluded that even if the company is making more than $200 billion by 2030, it will still need to find a further $207 billion in funding to stay in business."
Suppliers of data centers, chips, and compute power to OpenAI have accumulated about $96 billion in debt to fund operations and build-outs. The debt breakdown includes $30 billion already borrowed by SoftBank, Oracle, and CoreWeave; $28 billion in loans by Blue Owl Capital and Crusoe; and $38 billion under discussion with Oracle, Vantage, and banks. OpenAI has committed $1.4 trillion for future energy and computing procurement but expects roughly $20 billion in revenue this year. HSBC estimates that even with over $200 billion by 2030, OpenAI would still require an additional $207 billion. CoreWeave reported substantial current and future liabilities and modest near-term revenue expectations. Major hyperscalers have also taken on significant debt.
Read at Fortune
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