Sam Altman’s $300B Cloud Bet and the Future of OpenAI

OpenAI Scales Up With Historic Infrastructure Deals
OpenAI has committed to two historic investments: a $300 billion Oracle cloud contract beginning in 2027 and a $10 billion Broadcom chip order. The deals underline the extraordinary cost of sustaining AI growth.

After a $40 billion raise, OpenAI’s valuation sits at $300 billion, with expectations of reaching $500 billion through a $6 billion share sale. Current revenue is about $10 billion annually, but losses of $60 billion per year are projected until profitability in 2029.

Sam Altman plans 1 million GPUs online by year-end and is moving forward with Stargate, a $500 billion global data infrastructure project, including a vast site in India. The market responded with Oracle stock soaring 40% and Broadcom climbing 5%.