OpenAI Faces Rising Losses as Partners like Oracle, SoftBank, and CoreWeave Accumulate $100 Billion in Debt—What Lies Ahead?

OpenAI’s partners, including SoftBank, Oracle, and CoreWeave, are collectively burdened with nearly $100 billion in debt linked to the AI firm, despite OpenAI’s minimal debt holdings. Oracle faces the most significant financial exposure, suffering a $315 billion loss in market value following its $300 billion deal with OpenAI. The partners have borrowed at least $30 billion to invest or develop data centers for OpenAI, while additional loans totaling $38 billion are under negotiation to fund new sites. This financing strategy leverages external balance sheets, allowing OpenAI to operate with a $4 billion credit facility, yet raising systemic concerns due to its $1.4 trillion procurement commitments, which starkly outweigh its projected $20 billion in revenue. Analysts highlight the complex, circular financing structures that shield investors from default risks, as OpenAI routes funds back into purchasing computing power. Overall, this extensive debt equates to the combined net debt of the world’s largest corporate borrowers.

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