OpenAI: Billion-Dollar Chip Purchases Raise Investor Concerns

OpenAI is making billion-dollar orders for microchips, causing concern among investors due to the discrepancy between its spending and revenue. The company has committed to purchasing 26 gigawatts (GW) worth of chips from Nvidia, AMD, and Broadcom, equivalent to at least ten million units.

Gil Luria of D.A. Davidson estimates that hundreds of billions of dollars will be needed to cover these commitments. OpenAI projects revenues of $13 billion in 2025 and does not expect profitability before 2029. The group declined to comment on the financing of these purchases. Greg Brockman, president of OpenAI, referred to "various mechanisms" without providing details.

Nvidia has committed to buying $100 billion worth of OpenAI shares, while AMD has agreed to give shares to OpenAI, an unusual move without consideration. Sam Altman, head of OpenAI, has the potential to influence the global economy, according to Bernstein analyst Stacy Rasgon.

Some analysts speak of a speculative bubble, while others, such as Josh Lerner of Harvard, point to the real demand for artificial intelligence. Angelo Zino of CFRA reports that OpenAI has over 800 million weekly ChatGPT users. Wall Street continues to invest in artificial intelligence, despite disagreements.

Source: ΑΠΕ-ΜΠΕ