HSBC spies $207B crater in OpenAI's expansion goals

OpenAI needs to secure $207 billion in new financing by 2030 to fulfill its expansion plans, according to HSBC Global Investment Research – a challenge that could ripple across Big Tech.

The funding shortfall emerged after OpenAI committed $300 billion to Oracle, $250 billion to Microsoft, and $38 billion to AWS for cloud computing services. Even with HSBC's updated revenue projections, which increased 4 percent from earlier estimates, the gap remains substantial.

In a research paper HSBC shared with The Register, it warns OpenAI "would need $207 billion of new financing by 2030. One unknown parameter is the flexibility that OpenAI may have to adjust its commitment vs effective demand or financial capacity. Capital injections, debt issuance, or higher revenue than in our model would help closing the funding gap."

HSBC predicts that OpenAI's ChatGPT consumer products will attract 3 billion regular users by 2030, up from 800 million ...