Comment by Tanjreeve

3 hours ago

I think there’s some crossed wires here with the wider data centre build outs. OpenAI have their own flavours of sketchy behaviour but I’m not aware of them solely being on the hook for those amounts short of some weird accounting of Microsoft cloud costs onto them or something.

3 comments

Tanjreeve

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estearum  3 hours ago

Don’t they have a fully committed preorder for like $500 billion in compute from Oracle starting in 2028? And Oracle is funding that buildout with junk debt?

  • chiph  1 hour ago

    Oracle is the one with the debt. OpenAI has an order/contract (promise) to someone else.

    Presumably there are penalties if OpenAI were to cancel that order (I am confident that Oracle's army of lawyers made sure to include that). That's the unmovable rock on OpenAI's books, not the data center.

  • fn-mote  1 hour ago

    > junk debt

    Not a useful term, here.

    AIUI, the building is funded by making the people who order it part owners in the new data center company. Not sure and I don’t care enough to find out; clarification welcome.