OpenAI Uses Complex and Circular Deals to Fuel Its Multibillion-Dollar Rise

6 months ago

OpenAI uses complex and circular financial deals to fund its AI ambitions.
Microsoft invested over $13 billion in OpenAI, which then spent most of it back on Microsoft's cloud computing services.
OpenAI signed cloud computing contracts with Oracle and CoreWeave, agreeing to pay over $22 billion for computing power.
SoftBank led a $40 billion investment in OpenAI and is raising $100 billion to help build data centers.
Oracle is spending $300 billion to build data centers for OpenAI, which OpenAI will pay to use.
G42, linked to the UAE government, is building a $20 billion data center complex for OpenAI.
Nvidia plans to invest $100 billion in OpenAI, while OpenAI buys chips from Nvidia.
OpenAI signed a deal with AMD to buy up to 160 million shares at a penny per share, potentially giving it a 10% stake.
OpenAI generates billions in revenue but still operates at a loss, relying on future AI advancements to become profitable.
If AI progress stalls, OpenAI and its partners could face significant financial losses, with smaller companies like CoreWeave at risk of bankruptcy.

Hasty Briefsbeta