There’s just one problem with this master plan: OpenAI doesn’t have the money to pay for it. For example, OpenAI is committing to pay Oracle $60 billion in capex investment annually for five years. For reference, Meta, one of the most valuable and profitable companies in the world, which brought in $164.5 billion in revenue in 2024 and ended the year with a free cash flow of $52.10 billion, plans to spend $72 billion in 2025 building data centers. OpenAI, on the other hand, is on pace to bring in $12.7 billion this year, expects to lose $9 billion, predicts its losses will swell to $47 billion by 2028, and doesn’t expect to break even until 2029. How can OpenAI plan to spend five times what it brought in?
The AI Ouroboros at The American Prospect
So if you’re trying to follow along, you have three companies. Nvidia makes computer chips. Oracle fleeces the federal government by making it impossible to move to cheaper, modern infrastructure provides cloud architecture. And OpenAI makes software that lies confidently makes software that lies confidently.
OpenAI has grand plans but no money. Oracle is desperately trying to modernize itself before people figure out it’s a dinosaur. Nvidia actually produces useful things. So OpenAI is going to pay Oracle to host their data centers so they can convert more scarce natural resources into false information. Oracle is buying tons of Nvidia chips. And Nvidia is pledging money to OpenAI to try and make all this happen.
Imagine you create three companies, A, B, and C. A pledges $100 billion to B. B pledges $100 billion to C. And C pledges $100 billion to A. No one has any actual money, but you now have three hundred billion dollar companies, and the stock market will manifest the value.
