OpenAI is set to invest $100 billion over the next five years in backup servers from cloud providers to meet the soaring demand for AI technology. This initiative is crucial for maintaining strong computing power and could also generate revenue through enhanced research and AI tools. Overall, OpenAI plans to allocate a total of $350 billion on server rentals by 2030, averaging $85 billion annually while potentially burning $115 billion in cash by 2029 to scale its AI infrastructure. Amid intense global competition, this investment aims to mitigate operational disruptions and support growth. Concurrently, Microsoft has scaled back its data center projects due to capacity oversupply but maintains plans to invest $80 billion in AI infrastructure this fiscal year. Additionally, OpenAI has partnered with Oracle in a $300 billion cloud deal and is advancing its $500 billion ‘Stargate’ initiative to build extensive global data centers, including in India.
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