{"id":196868,"date":"2025-10-08T06:29:08","date_gmt":"2025-10-08T06:29:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/196868\/"},"modified":"2025-10-08T06:29:08","modified_gmt":"2025-10-08T06:29:08","slug":"openai-computing-deals-pass-trillion-dollar-mark","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/196868\/","title":{"rendered":"OpenAI Computing Deals Pass Trillion Dollar Mark"},"content":{"rendered":"

That\u2019s according to a\u00a0report<\/a>\u00a0Tuesday (Oct. 7) by the Financial Times (FT), which notes that these agreements dwarf the artificial intelligence (AI) startup\u2019s revenues while raising questions about how it can honor those commitments.<\/p>\n

The report came one day after OpenAI\u00a0forged a new agreement<\/a>\u00a0with chipmaker\u00a0AMD<\/a>, following\u00a0similar deals<\/a>\u00a0with\u00a0Nvidia<\/a>,\u00a0Oracle<\/a>\u00a0and\u00a0CoreWeave<\/a>, as the company seeks the computing power it projects it will need to power AI offerings such as ChatGPT.<\/p>\n

According to the FT, these deals would give OpenAI access to upwards of 20 gigawatts of computing capacity, around the equivalent of power from 20 nuclear reactors, over the next decade. Each 1GW of AI computing capacity costs about $50 billion to use at current prices, per estimates by OpenAI, making the total cost about $1 trillion.<\/p>\n

These deals, the report added, have tied some of the world\u2019s largest tech companies to OpenAI\u2019s ability to turn a profit and meet its heavy financial obligations.<\/p>\n

The company \u201cis in no position to make any of these commitments,\u201d said\u00a0Gil Luria<\/a>, analyst at\u00a0DA Davidson<\/a>, who added that OpenAI could lose roughly $10 billion this year.<\/p>\n

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\u201cPart of Silicon Valley\u2019s \u2018fake it until you make it\u2019 ethos is to get people to have skin in the game. Now a lot of big companies have a lot of skin in the game on OpenAI,\u201d he said.<\/p>\n

In other AI news, PYMNTS wrote earlier this week about the\u00a0changing face of AI funding<\/a>. Billions are still flowing into the industry, \u201cbut not where they used to,\u201d that report said.<\/p>\n

The largest recent funding rounds went to firms focused on deployment, compute and pricing, the systems that determine AI\u2019s efficiency and potential for profitability.<\/p>\n

\u201cThe focus is shifting from invention to execution as investors look for what they can scale,\u201d PYMNTS added, citing recent rounds from the likes of\u00a0Cerebras Systems<\/a>, which raised $1.1 billion at an $8.1 billion valuation to boost chip production and data center capacity.<\/p>\n

\u201cThe movement of capital toward companies like these reflects a broader transition. Investors are supporting firms that make AI usable, reliable and measurable, turning research advances into systems that work at scale,\u201d that report said.<\/p>\n

\u201cAs PYMNTS reported, more than half of\u00a0global venture investment<\/a>\u00a0this year went to AI startups, a trend reflected in this week\u2019s funding activity.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"That\u2019s according to a\u00a0report\u00a0Tuesday (Oct. 7) by the Financial Times (FT), which notes that these agreements dwarf the…\n","protected":false},"author":2,"featured_media":196869,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[62,276,49,48,285,44,278,7995,61,7996],"class_list":{"0":"post-196868","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-computing","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-ca","11":"tag-canada","12":"tag-computing","13":"tag-news","14":"tag-openai","15":"tag-pymnts-news","16":"tag-technology","17":"tag-whats-hot"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/196868","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=196868"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/196868\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/196869"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=196868"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=196868"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=196868"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}