OpenAI's AI money pit looks much deeper than we thought. Here's my opinion on why this matters

We live in strange times. The FT reported this week that ChatGPT maker OpenAI, which was responsible for kickstarting the surge of interest in Artificial Intelligence (AI) back in 2022, is in a deeper hole than even its harshest critics realize.

According to the paper, OpenAI "needs to raise at least $207 billion by 2030 so it can continue to lose money". The paper's Alphaville service describes the company as a "burning platform" and "a money pit with a website on top".

Strong words. That assessment came via HSBC's software and services team in the US, which has been tracking the company's numbers. By their calculations, OpenAI is heading for data center rental costs of $620 billion a year, rising to $1.4 trillion by 2033 – which, incidentally, is more than the GDP of Saudi Arabia ($1.2 trillion).

Remember, this is the company that describes itself ...