Companies supplying data centers, chips, and processing power to OpenAI have racked up a staggering $96 billion in debt to fund their operations.
What Happened: According to the report, the AI industry's increasing reliance on debt and its dependence on the loss-making startup OpenAI continues to raise concerns.
The revenue generated by AI firms and the rapidly expanding data center operators serving them falls short of covering their build-out costs.
As per the report by The Financial Times, OpenAI has pledged a whopping $1.4 trillion to secure the energy and computing power needed for its future operations. However, it expects to generate only $20 billion in revenues this year.
A recent study by HSBC indicates that even if OpenAI’s revenues surpass $200 billion by 2030, it will still require an additional $207 billion in funding to stay afloat.
Also Read: Microsoft’s AI Chief Criticizes ChatGPT’s Erotica Features Despite $13 Billion OpenAI Investment
OpenAI’s partners, which include SoftBank, Oracle, and CoreWeave, have already borrowed $30 billion. Blue Owl Capital and Crusoe have taken out $28 billion in loans, with another $38 billion under negotiation with Oracle and Vantage and their respective banks, reports the outlet.
Why It Matters: The shift towards debt financing in the AI sector is a recent phenomenon. In the past, most AI build-outs were financed with cash directly from the balance sheets of large tech firms such as Microsoft, Alphabet, Amazon, and Meta.
Furthermore, the big five hyperscalers, Amazon, Google, Meta, Microsoft, and Oracle—have accumulated $121 billion in new debt this year to fund AI operations, according to Bank of America.
This figure is over four times the average debt level issued by these companies over the past five years, indicating a significant shift in the industry’s financing strategies.
Read Next
OpenAI's Altman Foresees AI Replacing 40% of Work Tasks Soon
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
