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A comment on OpenAI declares 'code red' as Google catches up in AI race. Parent comment

Re:OpenAI declares 'code red' as Google catches up in AI race by greedo on Tuesday December 02, 2025 @03:46PM (#46126601)
OpenAI doesn't have $500 billion in commitments lined up, it's promising to spend that much over 5 years... That's a helluva big difference than having $500B in revenue incoming.
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Re:OpenAI declares 'code red' as Google catches up in AI race by Tycho on Tuesday December 02, 2025 @05:31PM (#46127856)
Commitments here means money that people have agreed to lend them in future.
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Re:OpenAI declares 'code red' as Google catches up in AI race by staticman2 on Tuesday December 02, 2025 @09:51PM (#46129745)
Does it mean have agreed to lend them in a binding agreement that OpenAI can sue to enforce?
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Re:OpenAI declares 'code red' as Google catches up in AI race by Tycho on Wednesday December 03, 2025 @08:26AM (#46134229)
Yes. The capital is not needed immediately, but they have agreed to provide it if/when called upon in future.
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Re:OpenAI declares 'code red' as Google catches up in AI race by greedo on Wednesday December 03, 2025 @09:57AM (#46135205)
This is highly unlikely. Imagine OpenAI struggling, and in year 4 of this "commitment" call upon the lenders to provide over $100B in capital. The lenders will definitely have recourse if the risk is too high. Otherwise this would simply be a commercial line of credit, or they would be investing the funds directly in OpenAI now.
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Re:OpenAI declares 'code red' as Google catches up in AI race by Tycho on Saturday December 06, 2025 @01:30PM (#46175467)
The contract would obviously not be no strings attached.
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Re:OpenAI declares 'code red' as Google catches up in AI race by __turbobrew__ on Tuesday December 02, 2025 @06:30PM (#46128363)
Data centers take time to build. The capital investment to build these DCs is needed now in expectation that future revenue streams will pay for that capital.
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Re:OpenAI declares 'code red' as Google catches up in AI race by greedo on Wednesday December 03, 2025 @09:55AM (#46135186)
That's not what OpenAI announced. They said initial spend would be $100B, and I'm sure until the ink is dry on each contract, that they can change their mind at any time. No business is going to be placing ironclad commitments four years out.
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