Analysts at financial firm HSBC (HSBC) believe that AI firm OpenAI (PC:OPAIQ) might need $207 billion in new funding by 2030. This updated estimate is based on OpenAI’s latest cloud usage and rental cost plans. According to analyst Nicolas Cote Colisson, OpenAI recently signed a $250 billion deal with tech giant Microsoft (MSFT) and a $38 billion agreement with its rival Amazon (AMZN) to rent cloud computing power over seven years.
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But OpenAI isn’t alone in spending big. In fact, Anthropic (PC:ANTPQ), backed by Amazon and Alphabet (GOOGL), also made major infrastructure moves. For example, it agreed to buy one million AI chips from Alphabet, worth tens of billions of dollars, committed to a $50 billion infrastructure investment, and entered a $30 billion capacity agreement with Microsoft and Nvidia (NVDA). These announcements highlight how quickly companies are scaling up to meet the rising demand for AI models.
As a result, HSBC warns that while an “AI megacycle” may be ahead, OpenAI’s projected $1.4 trillion in compute costs over eight years could worry investors, especially since 2025 revenue is only expected to be $12.5 billion. Still, the analysts point out that close partnerships between model developers, chipmakers, and cloud providers are helping accelerate real-world AI adoption.
Which AI Stock Is the Better Buy?
Turning to Wall Street, out of the four AI stocks mentioned above, analysts think that Nvidia stock has the most room to run. In fact, Nvidia’s average price target of $257.33 per share implies more than 41% upside potential. On the other hand, analysts expect the least from Google stock, as its average price target of $312 equates to a loss of almost 1%.
