OpenAI may require up to $207 billion in new financing by 2030 to achieve the compute capacity it aims for, according to recent analysis from HSBC Global Investment Research. The artificial intelligence startup projects its compute costs will accumulate to $1.4 trillion over the next eight years. This insight was reported by Seeking Alpha on November 24, 2023.
The HSBC analysts noted, “We update our OpenAI forecasts with our new compute capacity and rental cost schedule and conclude it would need [$207 billion] of new financing by 2030.” They highlighted the uncertainty surrounding OpenAI’s flexibility in adjusting its commitments in response to demand and financial capacity. They suggested that potential capital injections, debt issuance, or higher-than-expected revenue could help mitigate the funding gap.
OpenAI’s CEO, Sam Altman, indicated aspirations for significant advancements in the company’s compute capabilities. In a post on the social platform X on October 29, Altman expressed intentions to build an AI factory capable of generating 1 gigawatt of compute power per week. He elaborated on internal goals that include having an automated AI research intern by September 2026, operating on hundreds of thousands of GPUs, and ultimately achieving a fully automated AI researcher by March 2028.
Altman acknowledged the ambitious nature of these goals, saying, “We may totally fail at this goal, but given the…” He later reiterated that OpenAI is comfortable with its current commitments of about 30 gigawatts of compute, which carry a total cost of ownership of approximately $1.4 trillion.
This financing landscape comes amid a surge of investment in AI startups. According to PYMNTS, firms continue to funnel capital into companies that provide essential infrastructure for creating and deploying advanced AI models.
Recent developments in the sector include a November 18 announcement from Microsoft, which revealed a multibillion-dollar partnership with AI startup Anthropic, aimed at scaling its Claude AI model on Nvidia-powered Microsoft Azure. As part of this collaboration, Anthropic is set to purchase $30 billion of Azure compute capacity and may contract additional capacity up to 1 gigawatt. Additionally, Microsoft and Nvidia plan to invest up to $5 billion and $10 billion, respectively, in Anthropic.
On November 9, Meta announced its commitment to invest $600 billion in the United States by 2028 to establish AI data centers, further underscoring the growing emphasis on AI infrastructure.
As the demand for advanced AI continues to escalate, the financial strategies and commitments of companies like OpenAI will be crucial in shaping the future of artificial intelligence.
