OPENAI has sharply raised its projected cash burn through 2029 to $115 billion as it ramps up spending to power the artificial intelligence behind its popular ChatGPT chatbot, The Information has reported.
The new forecast is $80bn higher than the company previously expected, the news outlet said, without citing a source for the report.
According to The Information, the surge in cash burn for OpenAI comes at a time when it’s ramping up spending to power the artificial intelligence behind its popular ChatGPT chatbot. The tech firm has also become one of the world’s biggest renters of cloud services.
The source revealed that the AI company expects to burn over $8bn this year. OpenAI had forecasted early in the year that it would only burn around $1.5bn.
According to the report, OpenAI doubled its cash burn expectations for 2026 to more than $17bn, surpassing its previous forecast of $10bn. The firm also projects a $35bn cash burn in 2027 and $45bn in 2028.
The Financial Times also disclosed that the Silicon Valley startup plans to develop its data centre server chips and facilities to power its technology. According to the report, the initiative aims to control the tech company’s surging operational costs.
The firm relies on substantial computing power to train and run its systems. The company’s CEO, Sam Altman, has also advocated the need for increased computing power to accommodate the growing demand for AI products such as ChatGPT.
Deloitte’s 2025 AI infrastructure Survey revealed that the energy demands of AI are straining traditional power grids. According to the study, 79 per cent of executives anticipate increased power demand through the next decade, with grid stress emerging as a top challenge.
The source added that US semiconductor giant Broadcom will partner with OpenAI to produce the first set of chips and start shipping them by next year. Also, OpenAI allegedly plans to use the chips internally rather than selling them for external clients.
Broadcom’s CEO, Hock Tan, hinted the company had partnered with an undisclosed customer that committed to $10bn in orders. During a call with analysts, he revealed the firm had secured a fourth customer to boost its custom AI chip division. Tan stated the collaboration with OpenAI has enhanced its growth outlook for fiscal 2026 by generating immediate and substantial demand.
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