OpenAI is set to burn nearly $280B in cash by 2030: FT

OpenAI OPENAI expects its negative free cash flow to reach $278B from 2026 to 2030 amid plans to invest aggressively in AI-related computing power, The Financial Times reported, citing a recent company presentation.

The ChatGPT maker projects its expenses to far exceed its revenues, which are set to grow 10 times over the same five-year period from $36B in 2026 to $350B in 2030. The company also expects to record $840B in revenue from now through the end of the decade as it pushes for a valuation exceeding $1T as part of its latest funding efforts.

Having generated $122B in funds in March, OpenAI OPENAI projects that cash will deplete as early as 2028, highlighting its massive capital requirements to sustain its leadership in AI, according to the presentation.

There are indications that heavy spending is boosting the company’s top line, with new model releases increasing OpenAI’s OPENAI annualized revenue by about 20% in July. The company projected a more severe cash burn in May, forecasting $305B in negative free cash flow.

The Sam Altman-led firm expects to spend about $856B on computing power and infrastructure by the end of 2030, its single largest expenditure by far.

On Wednesday, the FT reported that OpenAI OPENAI has recently held talks for a fresh capital injection ​that would increase the AI startup’s valuation to ‌about $1.2T before its highly anticipated public debut.

Last week, CEO Altman said that the company’s IPO, which was previously expected to take place as early as this fall, will not happen in 2026 amid a backdrop of rising safety concerns over fast-paced AI development.