OpenAI has significantly increased its projected cash burn through 2029 to $115 billion, driven by increased spending to enhance the artificial intelligence behind its widely-used ChatGPT chatbot, according to a report by The Information on Friday.
This new forecast is $80 billion higher than the company’s previous estimate, though the source of this information was not disclosed. OpenAI, now one of the largest consumers of cloud server resources, anticipates a cash burn of over $8 billion this year, which is $1.5 billion more than earlier predictions.
The company has yet to respond to requests for comment from Reuters. To manage its rising costs, OpenAI plans to develop its own data center server chips and facilities to support its technology, as reported by The Information.
Additionally, OpenAI is set to launch its first artificial intelligence chip next year in collaboration with U.S. semiconductor firm Broadcom. Reports indicate that the chip will be used internally rather than offered to customers.
In July, OpenAI strengthened its partnership with Oracle, aiming for 4.5 gigawatts of data center capacity as part of its Stargate initiative, a project potentially worth up to $500 billion and involving Japanese tech investor SoftBank Group. The company has also included Google Cloud among its computing capacity suppliers.
According to The Information, OpenAI’s cash burn is expected to more than double to over $17 billion next year, which is $10 billion higher than earlier estimates. Projections indicate a burn of $35 billion in 2027 and $45 billion in 2028.
