A growing number of OpenAI’s major partners are taking on large amounts of debt as they build data centers and infrastructure to support the company’s expanding artificial intelligence operations. An analysis shows these partners have collectively accumulated close to one hundred billion dollars in borrowing tied to the loss making AI developer, while OpenAI itself carries very little direct debt.
Several large technology and investment companies have borrowed heavily to fund OpenAI related projects. SoftBank, Oracle and CoreWeave have taken on more than thirty billion dollars to invest in the company or build data center capacity. Investment firms and infrastructure operators are depending on the revenue they receive from OpenAI customer contracts to service about twenty eight billion dollars in loans. Banks are also discussing another thirty eight billion dollar loan for Oracle and a data center operator to support additional OpenAI facilities.
Much of this financing relies on special purpose vehicles and structures designed to protect investors if the loans fail. Some arrangements offer lenders no recourse to the developers involved, meaning that the lenders bear the losses if the loans are not repaid.
The scale of borrowing stands out because OpenAI has committed to procurement costs worth one point four trillion dollars over the next eight years, far more than its expected twenty billion dollar annual revenue this year. A senior OpenAI executive said, “That’s been kind of the strategy. How does [OpenAI] leverage other people’s balance sheets?” The company maintains only a four billion dollar credit line, which has not yet been used.
Oracle appears to be the most exposed partner. Since it announced a three hundred billion dollar agreement with OpenAI in September, its market value has fallen by three hundred fifteen billion dollars. Analysts expect Oracle will need to borrow one hundred billion dollars over the next four years to meet its commitments. The funding model includes circular elements, with OpenAI receiving money from technology companies and then spending it on computing services provided by those same companies.
The one hundred billion dollars in loans and bonds tied to OpenAI is comparable to the net debt of some of the world’s largest corporate borrowers combined. The situation has raised concerns among industry observers who warn that this financing pattern could signal broader risks if demand or revenue projections shift.
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