OpenAI has signed deals worth $1 trillion with leading technology companies to scale AI.
OpenAI has entered into contracts with giants such as Nvidia, AMD, Oracle, and CoreWeave, securing access to 20 gigawatts of computing power for the development of artificial intelligence over the next decade.
These contracts provide OpenAI with significant leverage to implement its ambitious AI development project, including the renowned ChatGPT model. The total value of these agreements is approximately $1 trillion, allowing access to resources equivalent to the energy output of 20 nuclear reactors. The latest addition to this list is the contract with AMD, signed on Monday.
According to Financial Times, the partnership with Nvidia could cost OpenAI up to $500 billion, and with AMD up to $300 billion. OpenAI already has agreements with Oracle worth $300 billion and CoreWeave for over $22 billion. This partnership creates a complex financial network where technology corporations benefit from OpenAI’s growth while also investing in it.
Despite optimistic forecasts, the company faces challenges due to a lack of own capital. Infrastructure, chips, and personnel costs require external investments, posing risks of losses of around $10 billion by 2025. Analysts believe this strategy shows a “Silicon Valley” approach to building a business.
In addition to financing, OpenAI receives stock warrants from AMD and $100 billion investments from Nvidia over the next 10 years. The market value of these companies has significantly increased after signing the agreements. However, according to Moody’s, much depends on OpenAI’s success, and for now, profitability prospects remain uncertain.
This development could significantly impact the overall landscape of the tech industry as OpenAI and its partners strive to secure leading positions in the field of artificial intelligence. However, to achieve full profitability, the company must address a number of financial and strategic challenges, as agreed by OpenAI’s CEO Sam Altman.
| Partner | Estimated Deal Value |
|---|---|
| Nvidia | $500 billion |
| AMD | $300 billion |
| Oracle | $300 billion |
| CoreWeave | $22 billion |
