In a surprising financial revelation, OpenAI's data center partners are shouldering nearly $100 billion in borrowing linked to the loss-making artificial intelligence startup, according to a Financial Times analysis. The massive financial burden falls squarely on suppliers rather than on the ChatGPT maker itself.
Massive Debt Accumulation Among Partners
Major technology companies including SoftBank, Oracle, and CoreWeave have collectively borrowed at least $30 billion to invest in OpenAI or construct its specialized data centers. Meanwhile, investment group Blue Owl Capital and infrastructure companies like Crusoe are relying on OpenAI customer contracts to service approximately $28 billion in outstanding loans.
Financial institutions are currently negotiating an additional $38 billion loan for Oracle and Vantage Data Centers to fund additional OpenAI sites, according to the FT report. This brings the total borrowing tied to OpenAI's operations to nearly $100 billion.
Circular Financing Raises Systemic Concerns
The staggering debt pile becomes particularly concerning when considering OpenAI's $1.4 trillion in procurement commitments spread over eight years. This massive commitment dramatically exceeds the company's expected $20 billion annualized revenue for this year.
A senior OpenAI executive confirmed this financial strategy to the Financial Times, stating: "That's been kind of the strategy. How does OpenAI leverage other people's balance sheets?"
Meanwhile, OpenAI itself maintains remarkably little debt. The company secured a $4 billion credit facility last year but has not yet drawn from it. Many of the financing deals involve special purpose vehicles and complex structures specifically designed to shield investors from default risk.
Some loans reportedly have no recourse to developers, meaning lenders would completely absorb losses if payments fail to materialize.
Oracle Bears the Brunt as Market Questions Viability
Oracle has emerged as the most exposed partner in this arrangement. Since announcing its $300 billion OpenAI deal in September, Oracle's stock has shed a staggering $315 billion in market value, according to FT Alphaville analysis.
Analysts at KeyBanc Capital Markets predict that Oracle will need to borrow approximately $100 billion over the next four years just to deliver on its OpenAI contract commitments.
The financial arrangements contain circular elements, with OpenAI receiving billions from technology companies before routing those same funds back to purchase computing power and services from the same partners.
The Financial Times noted that the $100 billion in bonds, bank loans, and private credit tied to OpenAI equals the net debt of the world's six largest corporate borrowers combined, including automotive giants Volkswagen and Toyota.
