OpenAI slashes compute budget to $600 billion from $1.4 trillion
OpenAI just dropped its planned compute spending to $600 billion by 2030—a huge cut from the $1.4 trillion CEO Sam Altman pitched last year.
This move comes after investors asked for more financial discipline in the fast-moving AI world.
OpenAI's ambitious revenue goals
OpenAI made $13.1 billion in revenue last year but burned through $8 billion in cash.
Now, they're aiming for over $280 billion in revenue by 2030, split between regular users and businesses.
Even with the lower budget, OpenAI's planned spending still dwarfs the annual capital expenditures of tech giants like Microsoft and Amazon combined.
Potential ripple effects in the AI ecosystem
Investors were uneasy about earlier big-spending plans, especially after projects like Stargate hit roadblocks.
By cutting back, OpenAI is showing it's listening—and the move may calm investors.
This shift could shake up how companies like NVIDIA and major data centers plan for an AI-powered future.