OpenAI is on track to have massive revenue this decade but the cloud bill is even bigger so the business never actually cash flows positive and needs hundreds of billions in outside funding to keep growing. HSBC models OpenAI’s sales ramping toward $200B plus by 2030 as ChatGPT and AI tools reach billions of people but in the same window they think OpenAI spends roughly $800B on compute, mostly renting GPUs and data center capacity from Microsoft, Oracle, and Amazon.
The mismatch means OpenAI stays cash negative all decade and has a roughly $207B funding hole that needs to be plugged with equity, debt or strategic cash from partners.What that means for the industry is that OpenAI looks less like a classic software company and more like a capital intensive utility where every new user brings a big compute bill that offsets the subscription or ad revenue. If this math is right, the near‑term winners in the AI trade are the infrastructure layer cloud providers, chip makers, and data center operators while OpenAI and companies like it sit in the middle, building great products but funneling most of the cash straight into someone else’s GPU farm.Source: StockMarket.News
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