OpenAI Facing Massive $200 Billion Funding Gap, Says HSBC
A new research report from HSBC suggests that OpenAI, the company behind ChatGPT, may require over $200 billion in additional funding by 2030 just to keep operating due to soaring computing expenses.
prativad 
A new research report from HSBC suggests that OpenAI, the company behind ChatGPT, may require over $200 billion in additional funding by 2030 just to keep operating due to soaring computing expenses.
According to the bank's research, which was recently distributed to clients, the maker of ChatGPT will need this massive injection of cash to fuel its expansion amid the intensifying global AI race and ever-climbing computing costs.
The updated HSBC model, which takes into account OpenAI's recent long-term cloud and compute agreements with tech giants like Microsoft, Amazon, and Oracle, projects a funding shortfall of approximately $207 billion by the end of the decade. This is despite optimistic assumptions that OpenAI's revenues could reach $129 billion in the same period.
The high cost of maintaining its operations is highlighted by HSBC's estimate that OpenAI's total cloud rental bill could hit roughly $800 billion by 2030. Nevertheless, the bank is still projecting explosive user growth, estimating that ChatGPT could reach 3 billion regular users by 2030, a significant jump from about 800 million users last month.
OpenAI has been at the forefront of the AI boom since ChatGPT's launch three years ago, attracting massive investor interest. However, some analysts warn that the huge investment pouring into data centers and advanced chips by Big Tech, coupled with the immense spending outpacing current returns, could be creating a bubble in the sector.
The urgency to keep up with ChatGPT-style services, which have disrupted traditional online search, has pushed investment across the tech sector to record highs.
This need for significant future funding comes despite OpenAI's recent success in October, when it surpassed Elon Musk’s SpaceX to become the world’s most valuable private company, valued at about $500 billion following a $6.6 billion employee share sale.
