OpenAI Backers Could Rack Up $100 Billion in Debt

Core Insights - OpenAI's data center partners are set to accumulate nearly $100 billion in borrowing to support the company's growth and infrastructure needs [1][2][3] - The financial strategy involves leveraging the balance sheets of partners like SoftBank, Oracle, and CoreWeave, which have collectively borrowed at least $30 billion for investments related to OpenAI [2][4] - OpenAI has signed $1.4 trillion in deals for computing power over the next eight years, significantly exceeding its projected annual revenue of $20 billion [4][5] Financial Overview - Investment firms and infrastructure providers, including Blue Owl Capital and Crusoe, are tied to approximately $28 billion in loans based on contracts with OpenAI [3] - A group of banks is negotiating an additional $38 billion loan for Oracle and Vantage to expand data center capabilities for OpenAI [3] - OpenAI itself has minimal debt, with a $4 billion credit facility that remains untapped, indicating a reliance on external financing for its operational needs [5] Market Projections - OpenAI anticipates that its ChatGPT will reach at least 220 million paid subscribers by 2030, a significant increase from the current 35 million [6] - The company expects around 20% of its revenue to stem from new products related to shopping and advertising, indicating a diversification strategy [6]