OpenAI (OPAIQ), the company behind ChatGPT and one of the most influential players in artificial intelligence, is now linked to almost $100 billion in borrowing. However, this debt is not on OpenAI’s balance sheet. Instead, it belongs to the companies building the data centers and infrastructure that support OpenAI’s growth.
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Notably, OpenAI is valued at about $500 billion, making it the most valuable private tech firm in the world.
Partners Take on the Risk
OpenAI’s growth strategy has shifted most of the financial burden to companies helping build its ecosystem. Major partners, including SoftBank (SFTBY), Oracle (ORCL), and CoreWeave (CRWV), have already borrowed at least $30 billion to support OpenAI or build data centers tied to its technology.
Private credit firms such as Blue Owl Capital, along with infrastructure players like Crusoe Energy, are also tied to nearly $28 billion in loans linked to OpenAI-related projects.
And the borrowing is still growing. A group of banks is now discussing another $38 billion funding package for Oracle (ORCL) and Vantage Data Centers to build more OpenAI-related sites, with a final agreement expected soon.
Why the Debt Is Growing
OpenAI needs huge computing power to train and run models like ChatGPT and its new video tools. To secure this capacity, the company has signed more than $1.4 trillion in long-term contracts with chipmakers and data center developers. This is far higher than its expected $20 billion in revenue this year.
Despite this scale, OpenAI has taken on very little debt itself. It even has a $4 billion credit line that remains unused. Instead, the company is growing by relying on partners to build the expensive infrastructure it needs.
OpenAI Faces Growth and Risk
OpenAI argues this investment is necessary to keep up with fast-growing global demand for AI. Many partners agree, especially as AI becomes vital in cloud computing, robotics, and automation.
However, the strategy comes with risk. If AI demand slows or if OpenAI loses its lead, the debt tied to its ecosystem could become a problem for lenders and partners.
Using TipRanks’ Comparison Tool, we’ve compared some of the notable companies that employ chatbots, similar to OpenAI’s ChatGPT. The comparison tool helps investors gain a broader outlook on each stock and the industry as a whole.
