OpenAI’s AI Computing Crunch: Can’t Keep Pace with Exploding Demand
Compute Crisis Hits AI Giant
OpenAI hits a hardware wall—server capacity strains under unprecedented model training loads. The infrastructure groans while competitors circle.
Silicon Shortage Bites Hard
GPU clusters run at 98% utilization with waitlists stretching into Q1 2026. Internal memos show engineers begging for priority access to NVIDIA's next-gen chips.
Investors Sweat the Bill
Each GPT-6 training run now burns $80 million in electricity alone—venture capitalists quietly calculate ROI timelines extending into the next decade. Because nothing says 'sustainable business model' like betting the farm on hardware that doesn't exist yet.
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Since ChatGPT launched in late 2022, OpenAI has grown fast. It expects to nearly triple its revenue this year to $12.7 billion, according to people familiar with the company. In addition, OpenAI recently announced that it has hit $10 billion in annual recurring revenue and reached its first $1 billion revenue month in July. CEO Sam Altman said that demand isn’t slowing down and that OpenAI could end up spending trillions on data centers in order to stay ahead. He believes that growth will continue and said the company is spending more aggressively than any company has ever before.
However, to fund this growth, OpenAI still has to rely on outside funding. Indeed, earlier this month, CNBC reported that OpenAI was in talks to sell around $6 billion in shares at a $500 billion valuation. That came after a record-breaking $40 billion funding round in March that valued the company at $300 billion. OpenAI also just launched ChatGPT-5, its most powerful model yet. And while some users praised its improved reasoning, others were upset that older models were temporarily removed, although access was quickly restored for paying users.
Is MSFT Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 32 Buys and one Hold assigned in the last three months. In addition, the average MSFT price target of $624.08 per share implies 23.4% upside potential.
