OpenAI chip orders dwarf its revenues

OPENAI is ordering hundreds of billions of dollars worth of chips in the artificial intelligence race, raising questions among investors about how the startup will finance these purchases.

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In less than a month, the San Francisco startup behind ChatGPT has committed to acquiring a staggering 26 gigawatts of sophisticated data processors from Nvidia, AMD, and Broadcom - more than 10 million units that would consume power equivalent to 20 standard nuclear reactors.

“They will need hundreds of billions of dollars to live up to their obligations,” said Gil Luria, managing director at DA Davidson, a financial consulting firm.

The challenge is daunting: OpenAI doesn’t expect to be profitable until 2029 and is forecasting billions in losses this year, despite generating about $13 billion in revenue.

OpenAl declined to comment on its financing strategy.