Development costs rise to a record high at OpenAI

Despite cost-saving measures, company still on track break $110bn by 2029

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Image: Andrew Neel: via Pexels

8 September 2025

OpenAI is experiencing a sharp rise in costs as it invests heavily in the development of advanced artificial intelligence, reports The Information. Forecasts now indicate that the company will spend $115 billion (€98.1 billion) on AI development by 2029. That is significantly more than the initial estimate of $35 billion (€29.9 billion). This year alone, OpenAI plans to spend more than $8 billion (€6.8 billion). That’s an increase of $1.5 billion (€1.3 billion) compared to earlier predictions.

To curb rising costs, OpenAI has put a number of strategies in place. The company is developing its own specialised server chips and infrastructure for data centres. A partnership with Broadcom, an American semiconductor company, should enable OpenAI to produce its first AI chip for internal use within a year. In addition, the company has expanded its collaboration with Oracle to significantly increase data centre capacity, while Google Cloud is being used for additional computing power.

Despite these cost-saving measures, financial projections point to a continued rise in expenditures. Next year, cash burn is expected to more than double to over $17 billion (€14.5 billion), exceeding the previous estimate by $10 billion (€8.5 billion). This trend is expected to continue, with expenditures of $35 billion (€29.9 billion) in 2027 and $45 billion (€38.4 billion) in 2028.