OpenAI drives stock rally while staying private and unprofitable
The post OpenAI drives stock rally while staying private and unprofitable appeared on BitcoinEthereumNews.com. OpenAI is pulling U.S. markets higher while staying private and unprofitable. According to CNBC, Sam Altman’s artificial intelligence company is now valued at $500 billion and has been signing contracts worth tens to hundreds of billions of dollars even as it burns cash. Those deals have already pushed the Nasdaq and S&P 500 to record highs this week after Nvidia agreed to invest up to $100 billion in OpenAI. That agreement came right after a $300 billion deal between OpenAI and Oracle in July under the Stargate program, a $500 billion infrastructure project also funded by SoftBank. The spending spree has not slowed. On Thursday, CoreWeave announced it had signed to provide OpenAI up to $22.4 billion in AI infrastructure, an increase from the $11.9 billion first announced in March. Earlier this month, Broadcom said it had secured a new $10 billion customer, and analysts pointed to OpenAI. The company insists that scaling is key for future breakthroughs, but investors are beginning to question the size of the sums and OpenAI’s dependence on a growing network of infrastructure partners. OpenAI expands its giant web of commitments OpenAI has been busy building financial links with its suppliers.It took a $350 million stake in CoreWeave ahead of its IPO in March.Nvidia formalized its stake by joining a $6.6 billion funding round in October. Oracle is spending about $40 billion on Nvidia chips to power one of OpenAI’s Stargate data centers, Cryptopolitan reported from a Financial Times note in May. Earlier this month, CoreWeave disclosed an order worth at least $6.3 billion from Nvidia. Through the $100 billion investment in OpenAI, Nvidia will get equity and earn revenue at the same time. The revenue gap is huge. OpenAI expects only $13 billion this year. CFO Sarah Friar told CNBC, “When the internet was…
The post OpenAI drives stock rally while staying private and unprofitable appeared on BitcoinEthereumNews.com.
OpenAI is pulling U.S. markets higher while staying private and unprofitable. According to CNBC, Sam Altman’s artificial intelligence company is now valued at $500 billion and has been signing contracts worth tens to hundreds of billions of dollars even as it burns cash. Those deals have already pushed the Nasdaq and S&P 500 to record highs this week after Nvidia agreed to invest up to $100 billion in OpenAI. That agreement came right after a $300 billion deal between OpenAI and Oracle in July under the Stargate program, a $500 billion infrastructure project also funded by SoftBank. The spending spree has not slowed. On Thursday, CoreWeave announced it had signed to provide OpenAI up to $22.4 billion in AI infrastructure, an increase from the $11.9 billion first announced in March. Earlier this month, Broadcom said it had secured a new $10 billion customer, and analysts pointed to OpenAI. The company insists that scaling is key for future breakthroughs, but investors are beginning to question the size of the sums and OpenAI’s dependence on a growing network of infrastructure partners. OpenAI expands its giant web of commitments OpenAI has been busy building financial links with its suppliers.It took a $350 million stake in CoreWeave ahead of its IPO in March.Nvidia formalized its stake by joining a $6.6 billion funding round in October. Oracle is spending about $40 billion on Nvidia chips to power one of OpenAI’s Stargate data centers, Cryptopolitan reported from a Financial Times note in May. Earlier this month, CoreWeave disclosed an order worth at least $6.3 billion from Nvidia. Through the $100 billion investment in OpenAI, Nvidia will get equity and earn revenue at the same time. The revenue gap is huge. OpenAI expects only $13 billion this year. CFO Sarah Friar told CNBC, “When the internet was…
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