OpenAI’s Cash Burn Could Approach $280 Billion by 2030

That projection spotlights the artificial intelligence company’s significant long-term funding needs as it targets a valuation of more than $1.2 trillion in new investment talks, the Financial Times (FT) reported Friday (Sept. 18).

The startup expects negative free cash flow of $278 billion between this year to 2030 as it invests heavily to expand its access to computing power, the report added, citing  a recent presentation viewed by the FT.

OpenAI expects its expenses will easily outweigh its revenues, which are forecast to increase by nearly tenfold in the same period, from $36 billion this year to $350 billion in 2030, the report said. In all, the company anticipates booking $840 billion in revenue between now and the close of 2030.

Now, the company is asking investors, many of whom have already given OpenAI tens of billions of dollars, to have faith in its spending plans, the report said. PYMNTS has contacted OpenAI for comment but has not yet gotten a reply.

The company recently began talks for a new funding round, with backers approaching OpenAI to discuss investing at a $1.2 trillion valuation. A source close to the company told the FT OpenAI is campaigning for an even higher valuation.