OpenAI To Burn $115 Billion-That's All?

"To use a yardstick for comparison, Meta says it will spend $70 billion in 2025 alone. Microsoft says it will spend $80 billion. Amazon ( NASDAQ: AMZN) says it will spend $100 billion. So, just this year, these three companies will "burn through" $250 billion. And, almost every expert in AI data center costs believes that the number will go up each year in the foreseeable future. That will put total investment in the next few years into the trillions of dollars."

"OpenAI will likely raise money by selling more equity. Round after round, its valuation will probably push upward. Its current valuation is between $300 billion and $500 billion. If OpenAI stumbles in revenue or adoption, that figure could flatten. Or, there could be a down round. Microsoft has $100 billion in cash and short-term investments on its balance sheet. It will have access to capital from financial firms."

OpenAI is projected to spend $115 billion by 2029, up from a previously cited $80 billion, with expenditures rising each year through the period. Major tech rivals plan far larger near-term outlays: Meta $70 billion in 2025, Microsoft $80 billion, and Amazon $100 billion, totaling roughly $250 billion this year alone. Experts expect AI data center costs to increase, driving cumulative investments into the trillions in coming years. OpenAI will likely fund growth by selling equity, with a current valuation estimated between $300 billion and $500 billion, but faces revenue, adoption, and valuation risks. Microsoft holds substantial cash and access to institutional capital, and enterprise distribution and cloud integration represent the largest commercial opportunity in AI.

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