Microsoft (NASDAQ:MSFT)-backed OpenAI has informed its investors that its spending could reach $115B through 2029, roughly $80B higher than its prior projection, as the ChatGPT creator ramps up investments to power the infrastructure behind its popular chatbot, The Information reported.
According to the report on Friday, in a bid to control cloud server rental expenses, the company is developing its own data center server chips and facilities that power its technologies.
With the popularity of ChatGPT, the Sam Altman-led firm has become one of the world’s biggest renters of cloud servers. OpenAI is planning to produce its first AI chip in collaboration with U.S. semiconductor giant Broadcom (AVGO) next year, The Financial Times reported this week.
The company’s spending forecast for this year stands at more than $8B, about $1.5B higher than its prior projection, The Information said, adding that its cash burn could more than double to over $17B next year, exceeding the previous forecast by roughly $10B.
Additionally, San Francisco, California-based OpenAI also projects that the spending for 2027 and 2028 could reach $35B and $45B, respectively, according to the report.