OpenAI to Spend $750 Billion on Compute by 2030 Despite Capacity Shortages
OpenAI has announced plans to invest approximately $750 billion in compute infrastructure through 2030, a significant increase from earlier estimates. The company acknowledges it remains short of capacity despite the massive planned spending. This development is reshaping AI infrastructure investments and affecting key players like Oracle (NYSE:ORCL), which reported record performance obligations tied to GPU arrangements. Oracle's Q4 FY26 results showed $638 billion in remaining performance obligations, with 97.5% global GPU utilization and a growing demand-supply gap. The company plans to raise around $40 billion through debt and equity financing for FY2027 to support its infrastructure expansion. However, Oracle's free cash flow turned deeply negative due to high capital expenditures. The market is mixed in response: while Oracle shares have risen recently on strong demand signals, they remain down significantly year-to-date. Peers like CoreWeave (NASDAQ:CRWV) and NVIDIA (NASDAQ:NVDA) are also under pressure from capacity constraints and financial strain.
Topics: Cloud Infrastructure CoreWeave GPU Demand NVIDIA OpenAI Oracle