The AI industry, particularly companies supporting OpenAI, has amassed an alarming $96 billion in debt as they strive to meet operational demands. As reported by The Financial Times, OpenAI has committed to $1.4 trillion for essential energy and computing resources but projects revenue of only $20 billion this year. A study by HSBC suggests that even if OpenAI’s revenues exceed $200 billion by 2030, an additional $207 billion will be needed to remain viable. Major partners like SoftBank and Oracle have already borrowed $30 billion, with another $38 billion in negotiations. This debt accumulation represents a noteworthy shift from traditional financing methods, where tech giants like Microsoft and Amazon typically funded AI developments directly. In 2023 alone, these leading firms collectively incurred $121 billion in new debt for AI initiatives, quadrupling their historical borrowing levels. This trend raises concerns about the sustainability of AI financing strategies moving forward.
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