OpenAI’s AI Ambitions Drive Record Spending
OpenAI has signed two unprecedented deals: a $300 billion, five-year Oracle cloud contract starting in 2027 and a $10 billion Broadcom chip order. Both highlight the immense financial burden of AI infrastructure.
The company, valued at $300 billion after a recent raise, is on track for $500 billion valuation with an upcoming $6 billion stock sale. But growth comes at a cost — OpenAI expects $60 billion in annual losses, delaying profitability until 2029.
Sam Altman’s plan involves deploying 1 million GPUs by year-end and building the Stargate project, a $500 billion expansion that includes a large-scale data center in India. The announcements lifted markets: Oracle gained 40%, boosting Larry Ellison’s fortune, and Broadcom climbed 5%.
