OpenAI forecasts $115B spending through 2029

OpenAI has dramatically raised its financial outlook, telling shareholders it expects to spend $115 billion over the next four years, according to a report from The Information. This figure is nearly $80 billion higher than its earlier projection of $46 billion, underscoring the company’s rapid expansion and heavy infrastructure investments. The AI startup has already spent around $2 billion in the past two years, and CEO Sam Altman has acknowledged that OpenAI may be the “most capital intensive” startup ever. The updated forecast reflects plans to build proprietary server chips and data centers, moves intended to reduce reliance on costly rentals while supporting the next generation of AI technologies. For 2025, OpenAI projects losses exceeding $8 billion, up from earlier expectations by $1.5 billion. Spending is set to accelerate in 2026, with more than $17 billion forecast—$10 billion higher than its prior estimate. In 2027 and 2028, the company expects to burn through $35 billion and $45 billion respectively, a dramatic increase compared to the $11 billion it once anticipated for 2028 alone. An earlier report in April suggested OpenAI would become cash flow positive by 2029, generating about $2 billion annually. That goal remains, but the road to profitability now comes with much higher upfront costs. The aggressive spending also explains why the company is raising more capital than any private firm in history. Beyond its internal forecasts, OpenAI remains a leading player in the generative AI landscape. A recent PYMNTS Intelligence survey of U.S. chief product officers at large companies found that 98% believe generative AI will transform operations within three years. Among industry preferences, OpenAI leads in technology, while Google holds sway among goods producers and Microsoft in services. Nvidia and Google also rank strongly across sectors. The new spending plans highlight both the immense costs of scaling AI and OpenAI’s determination to dominate the industry. With its focus on custom chips and infrastructure, the company is betting that massive investment now will secure long-term leadership in the global AI market.