Alright, let's break down why this whole OpenAI situation is a five-alarm fire of pure, unadulterated bullshit. Sam Altman is running what is essentially the world's most expensive and dangerous confidence game, and everyone in the media and tech world is just nodding along.
First, let's talk about the sheer, mind-boggling scale of the promises. OpenAI, a company that is hemorrhaging cash, has committed to building 250 gigawatts of data center capacity by 2033. To put that in perspective, the entire global data center capacity right now is about 55GW. So Altman is promising to build almost five times the entire world's current infrastructure in just eight years. The cost for this fantasy? Roughly $10 trillion. That is not a typo. That's one-third of the entire US GDP. It's a number so large it becomes meaningless, like a child saying they want a billion ice creams.
Now, let's get into the immediate, short-term insanity. In the next year alone, to even begin fulfilling the deals they've announced with Broadcom, NVIDIA, and AMD, OpenAI needs to secure about $400 billion. Let that number sink in. That's more than the total global venture capital raised in all of 2024. It's more than five times what Amazon spent to build AWS. And they need this cash almost immediately because building a single gigawatt data center takes years and billions of dollars upfront. There's also no evidence these data center projects have even broken ground, making the promised 2026 deployment dates a physical impossibility.
The financials are even more horrifying. OpenAI is burning money at a catastrophic rate of $6.7 billion on R&D in just six months, with a huge chunk of that spent on research for models they never even released. Their revenue is a fraction of their costs, and they're on track to spend $40 billion on compute contracts alone. It's a monstrosity that threatens to suck all the oxygen out of the Western financial system, requiring trillion-dollar annual investments that would eclipse global private equity deals.
The whole house of cards is built on blatant lies and market manipulation. Some verifiable lies include Altman claiming they magically acquired 1.7GW of capacity from nowhere (which is equivalent to all the data centers in the UK) and promising deployments in locations that don't exist.
It's a scam of historic proportions that will inevitably collapse and take the market down with it.
Think of how many kilometers of train infrastructure you could build for that kind of money.
1000 miles it seems