OpenAI significantly cuts expenditure target to $600 billion, squeezing profit margins and raising profitability concerns

OpenAI is readjusting its capital expenditure expectations as the artificial intelligence company faces growing concerns over whether it can generate enough revenue to cover its costs.

On February 20, CNBC reported that OpenAI told investors its total compute spending target through 2030 is approximately $600 billion, a significant reduction from the $1.4 trillion infrastructure commitment previously announced by CEO Sam Altman.

Additionally, the company expects total revenue to exceed $280 billion by 2030, a substantial increase from $13.1 billion in 2025, with consumer and enterprise business contributions roughly equal.

According to The Information, OpenAI’s adjusted gross margin has fallen to 33% in 2025, and the company still expects to achieve positive cash flow by 2030.

Previously, Wall Street Insights mentioned that OpenAI is finalizing a funding round valuing the company at $830 billion, aiming to raise $100 billion, with about 90% coming from strategic investors. Nvidia may invest up to $30 billion, while long-term partner Microsoft could invest several billion dollars.

Significant Reduction in Spending Expectations

The $600 billion expenditure target announced by OpenAI is a sharp contraction from its previous commitments.

Last fall, the company announced a series of billion-dollar infrastructure agreements, establishing partnerships with leading chip manufacturers and cloud computing providers.

Altman stated at the time that OpenAI committed to investing $1.4 trillion to develop 30 gigawatts of compute capacity, enough to power approximately 25 million American households.

According to CNBC, citing sources, the company is now providing investors with lower figures and clearer timelines because markets are increasingly concerned that its expansion ambitions are too grand relative to potential revenue. The new spending plan aims to align more directly with expected revenue growth.

The Information reports that OpenAI told investors that inference costs related to running AI models increased fourfold in 2025, leading to a reduction in adjusted gross margin from 40% in 2024 to 33%.

User Growth and Competitive Pressure

The report cites sources saying that ChatGPT currently supports over 900 million weekly active users, up from 800 million in October last year.

Although user growth slowed temporarily last fall, sources indicate that weekly and daily active user numbers have now rebounded to record highs.

Facing competition from Google and Anthropic, OpenAI announced a “red alert” status in December last year, focusing on improving chatbot capabilities.

The company’s coding product Codex now has over 1.5 million weekly active users, directly competing with Anthropic’s Claude Code, which has gained a large user base over the past year.

Record Valuation in Funding Round

OpenAI is nearing the completion of the first phase of a new funding round, expected to raise over $100 billion.

Based on pre-money valuation estimates, this round could value the company at approximately $830 billion, making it one of the largest private financings ever.

In addition to Nvidia, strategic investors include SoftBank and Amazon. Nvidia has confirmed discussions about investing up to $30 billion.

This funding round is the first since the company’s corporate restructuring last fall, which enabled it to issue standard equity and marked a key step toward an IPO. According to media reports citing sources, company executives have discussed going public as early as the fourth quarter.

The massive fundraising effort stems from expectations of soaring AI operational and training costs. Media sources indicate that last summer, the company forecasted that between 2025 and 2030, its AI system operation, training costs, and supporting backup servers would total about $450 billion.

The $830 billion valuation in this round represents a significant jump from last fall’s $500 billion, driven by sustained investor enthusiasm for AI pioneers despite the company’s substantial expenditure pressures. The smooth progress of this financing provides ample funding for OpenAI’s technological R&D and infrastructure expansion.

Risk Warning and Disclaimer

Market risks are present; investments should be made cautiously. This article does not constitute personal investment advice and does not consider individual users’ specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions herein are suitable for their particular circumstances. Invest at your own risk.