OpenAI’s Partners Face $96 Billion Debt: Rising Concerns Over the Loss-Making AI Company’s Future

Recent analysis by the Financial Times reveals that companies furnishing data centers and processing power to OpenAI have accumulated about $96 billion in debt, reflecting the AI sector’s escalating reliance on borrowed capital. While OpenAI anticipates generating $20 billion in revenue this year, it has committed $1.4 trillion for future energy and computing needs. Key players like SoftBank, Oracle, and CoreWeave have collectively borrowed significant amounts, with CoreWeave facing $3.7 billion in current debt against projected revenues of only $5 billion. Additionally, the top five hyperscalers—Amazon, Google, Meta, Microsoft, and Oracle—have taken on $121 billion in new debt this year, significantly impacting credit markets. Analysts note that this surge in debt, attributed primarily to AI infrastructure investments, affects credit spreads and indicates heightened default risk. Overall, the AI industry’s growth is increasingly fueled by leveraged funding, marking a pivotal shift in its financial landscape.

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