OpenAI’s expansion is primarily funded through substantial borrowing by its partners, with total debt nearing $100 billion sourced from suppliers and data center operators. Major players like SoftBank, Oracle, and CoreWeave have accumulated at least $30 billion in debt for investment, while additional loans of $28 billion have been issued to groups relying on OpenAI-related contracts. Banks are also negotiating $38 billion in funding for Oracle and Vantage Data Centers for further OpenAI facilities. Notably, OpenAI itself remains largely debt-free, standing in stark contrast to its $1.4 trillion procurement commitment over eight years against an anticipated $20 billion in annual revenue. The executive emphasizes a strategy focused on leveraging external balance sheets. Oracle faces significant financial risks, having lost $315 billion in market value since its deal with OpenAI. The intertwined financial arrangements create a circular capital flow, raising concerns about sustainability in an increasingly complex financial landscape.
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