OpenAI resets spending expectations. Compute target is around $600B by 2030 (www.cnbc.com)

OpenAI has recently revised its spending expectations, announcing plans to invest around $600 billion by 2030, a significant drop from its previous commitment of $1.4 trillion. This decision comes amid rising concerns about the company's ability to generate sufficient revenue to sustain its ambitious infrastructure expansion. OpenAI now estimates it will achieve $280 billion in revenue by 2030, with roughly equal contributions from both consumer and enterprise sectors, following a $13.1 billion revenue milestone in 2025. This recalibration is crucial for the AI/ML community as it reflects the dynamic nature of funding and growth expectations within the sector. OpenAI is finalizing a massive funding round projected to exceed $100 billion, with major investments from Nvidia, SoftBank, and Amazon, potentially valuing the company at $730 billion. Notably, OpenAI's growth in user engagement continues to soar, with ChatGPT reaching over 900 million weekly users, indicating strong market demand despite increased competition from rivals like Google and Anthropic. The adjustments in spending and revenue projections highlight the challenges and opportunities facing AI companies in an evolving landscape.