Report: NVIDIA's $100B OpenAI Investment Stalls
The Spin
Establishment-critical narrative
OpenAI's financial house is crumbling under the weight of unsustainable losses and structural dependencies that no amount of hype can fix. The company burned $5 billion in 2024 and would've lost $12 billion without Microsoft's compute discounts, all while competitors slash token prices to pennies and OpenAI clings to a $2.50 rate it can't justify. Committing to a $500 billion Stargate data center project and custom chip development while hemorrhaging cash on $12 billion CoreWeave contracts through 2030 isn't visionary — it's reckless spending that turns Wall Street goodwill into a ticking clock.
Pro-establishment narrative
The AI infrastructure race demands unprecedented capital deployment, and OpenAI's pursuit of $100 billion at an $830 billion valuation reflects the genuine costs of maintaining technological leadership in a sector where hyperscalers will spend $700 billion on AI capex in 2026 alone. Projected 2026 losses of $14 billion are standard for companies building transformative infrastructure, mirroring the paths of Amazon and Uber to dominance. Strategic partnerships with Amazon, SoftBank and Microsoft demonstrate that major players recognize OpenAI's value despite competitive pressures from Google and Anthropic.
