{"id":498379,"date":"2026-02-25T10:44:11","date_gmt":"2026-02-25T10:44:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/498379\/"},"modified":"2026-02-25T10:44:11","modified_gmt":"2026-02-25T10:44:11","slug":"openai-massively-cuts-spending-plan-as-reality-closes-in","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/498379\/","title":{"rendered":"OpenAI Massively Cuts Spending Plan as Reality Closes in"},"content":{"rendered":"

During a November podcast appearance alongside OpenAI investor Grad Gerstner, CEO Sam Altman lost his cool<\/a>.<\/p>\n

After Gerstner challenged<\/a> him on how a company \u201cwith $13 billion in revenues\u201d can \u201cmake $1.4 trillion of spend commitments\u201d through 2030, Altman got catty.<\/p>\n

\u201cIf you want to sell your shares, I\u2019ll find you a buyer,\u201d Altman snapped. \u201cEnough.\u201d<\/p>\n

At the time, despite certain pangs of panic over a growing AI bubble<\/a>, the hype was at an all-time high. OpenAI was already burning through oodles of cash<\/a>, committing to spend hundreds of billions a year on data center buildouts.<\/p>\n

But the tone has noticeably shifted<\/a> since then, with investors growing uneasy about big tech companies trying to one-up each other with astronomical planned capital expenditures, further straining a stock market that\u2019s become massively overindexed on AI.<\/p>\n

Meanwhile, OpenAI has been watching as major competitors in the space have made leaps and bounds<\/a> to catch up with its early lead. Some, like Google, have deeply established revenue sources bankrolling at least a portion of their AI spending commitments.<\/p>\n

Now, Altman has seemingly noticed the company may be in way over its head. As CNBC reports<\/a>, the company is now telling investors it\u2019s targeting around $600 billion in total compute spend by 2030, which is well under half of its original $1.4 trillion commitment.<\/p>\n

To put that into perspective, the company made just $13.1 billion in revenue for all of 2025 \u2014 while also burning through $8 billion, per CNBC\u2018s sources.<\/p>\n

It\u2019s a massive downshift, highlighting the company\u2019s apparent attempt to calm investors, who\u2019ve grown uneasy over massive spending plans. Tech companies including Amazon<\/a> and Microsoft<\/a> have seen their shares plummet earlier this year after announcing they remained devoted to their vast commitments.<\/p>\n

Altman had already declared \u201ccode red<\/a>\u201d towards the end of last year, directing his workers to double down on ChatGPT at the cost of delaying other projects to keep up with an ever-stronger competition.<\/p>\n

The company has also announced that it will soon be stuffing its blockbuster chatbot with ads<\/a>, news that was met with derision from competitors<\/a>.<\/p>\n

The ongoing division seems to have strained relationships among AI executives. During an appearance alongside a dozen other industry and political leaders at the recent AI Summit in New Delhi, India, Altman and Anthropic CEO Dario Amodei refused to hold hands<\/a> after being instructed by prime minister Narendra Modi \u2014 in what one Redditor<\/a> described as a \u201ccringe masterpiece.\u201d<\/p>\n

More on Altman: Sam Altman Fumes That It Takes Longer to Train a Human Than an AI, Plus They Eat All That Wasteful Food<\/a><\/p>\n

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