OpenAI to seek funding as cash burn looms

OpenAI is expected to exhaust hundreds of billions of dollars in cash by 2030, with projections indicating that its funds may run out by 2028. The company faces significant financial pressure, similar to its competitor Anthropic, which is also experiencing concerns over soaring infrastructure costs and a transition to losses ahead of its initial public offering (IPO).

According to a report, OpenAI is projected to record a negative free cash flow of 278 billion dollars (approximately 386 trillion KRW) from 2026 to 2030. This situation arises from increased spending on computing power and data center infrastructure necessary for training and operating AI models. By the end of 2030, OpenAI plans to invest a record-breaking 856 billion dollars (approximately 1,189 trillion KRW) in computing infrastructure alone.

Despite these challenges, OpenAI's revenue is expected to rise sharply, growing from an estimated 36 billion dollars this year to over 350 billion dollars by 2030. Cumulative revenues for this period may reach 840 billion dollars. However, the pace of cash burn is expected to accelerate due to infrastructure investment costs exceeding revenue growth and competitive pressures from price cuts among domestic rivals and Chinese open-weight models.

In response to cash burn concerns, OpenAI is discussing new funding with investors, targeting a company valuation of 1.5 trillion dollars (approximately 2,080 trillion KRW). Successfully securing additional investment could allow for a delay in its IPO schedule by one to two quarters.