OpenAI faces massive cash burn over next five years

According to a report by the Financial Times, OpenAI is projected to generate negative free cash flow of $278 billion from 2026 to 2030. This would be offset by a planned $856 billion investment in computing power and infrastructure. Free cash flow represents the cash a company has left after covering operating expenses and capital expenditures. A negative figure indicates that the company is spending more than it is earning, requiring external financing to sustain operations. OpenAI’s revenue is expected to grow from $36 billion in 2026 to $350 billion by 2030, a tenfold increase. However, the company’s spending on AI infrastructure is projected to outpace this growth, reaching $856 billion by 2030. To fund this, OpenAI raised $122 billion in March 2026, but the report suggests this will be exhausted by 2028. The company is currently negotiating a major funding round, with investors initially considering a $1.2 trillion valuation, though insiders suggest OpenAI is seeking a higher valuation.