Bottom line: OpenAI's artificial intelligence ambitions come with a price tag far steeper than previously expected. The company has told investors it could burn through $115 billion by 2029, nearly $80 billion more than earlier projections, according to a new report.
The company's revised forecast highlights just how quickly the costs of building and operating advanced AI systems are growing, according to The Information. OpenAI now expects its cash burn to reach more than $8 billion this year, approximately $1.5 billion above its earlier estimate for 2025. Spending is projected to more than double to $17 billion in 2026, climbing to $35 billion in 2027 and $45 billion in 2028.
The surge in costs is tied to the enormous computing power required to train and run ChatGPT, as well as other large-scale AI models. OpenAI has become one of the world's largest cloud server renters, and the company has indicated that it could spend upward of $150 billion on computing resources between 2025 and 2030.
To rein in those expenses, OpenAI is moving forward with plans to design its own data center chips and construct new facilities to support them. The company is expected to roll out its first AI chip in 2026 in partnership with semiconductor manufacturer Broadcom. Unlike products from Nvidia or AMD that are widely sold to customers, OpenAI's chips are slated for internal use.
OpenAI is also expanding its partnerships with data centers. In July, the company deepened its relationship with Oracle, with a plan for 4.5 gigawatts of capacity as part of its broader Stargate initiative. This project could involve up to $500 billion and 10 gigawatts of infrastructure investment. Investors include Japanese conglomerate SoftBank. Google Cloud has also been added to OpenAI's roster of providers, alongside Microsoft and Oracle.
The scale of the revised forecast highlights the capital-intensive nature of advancing generative AI at the pace OpenAI has set. While the company has not commented publicly on the reported projections, The Information noted that OpenAI conveyed its updated spending outlook directly to investors.
The sharply higher burn rate marks one of the largest long-term technology investments in the sector. It signals that OpenAI is betting its future on controlling more of the infrastructure that underpins its products, rather than relying solely on rented cloud capacity.