OpenAI.. built on debt... but isn't everything?

[Maxmars]

OpenAI will burn hundreds of billions of dollars through 2030, says HSBC
Subtitled: OpenAI's growth is skyrocketing, but so are its debts

I am aware that OpenAI is just one company.. but the description of the "state of affairs" just tickled me pink...
because it's presented in a manner that implies this is new "news"....
 

The overwhelming majority of the AI industry is currently running on multi-billion loans, rental contracts for non-existing data center capacity, and blind faith on the technology's ability to transform everything. According to new estimates, the end result of these converging factors is a company that's doomed to not reach profitability for a very long time.

The numbers kind of speak for themselves, ultimately if you replace "AI" with 'expectation of AI'  and you have to wonder how, never once having achieved anything even approaching "AI" there is a trillion dollar industry all around it....
 

Thanks to paid subscriptions, advertising, agentic AI services, and other commercial initiatives, OpenAI is going to capture 56 percent of all revenue from consumer AI in 2030, which HSBC estimates will be $129 billion in total. Surprisingly, Europe's largest bank thinks that Google will not be part of the market, while Anthropic, xAI, and "other" players will still be around in five years.

Enterprise AI revenue is expected to reach $386 billion, and OpenAI will get a 37 percent share of that market. All in all, the corporation will have a cumulative cash flow of $282 billion in 2030 – plus a few billion coming from Nvidia, AMD, and other partners. OpenAI will ultimately have to deal with a $207 billion gap in funding.

[ArMaP]

Meanwhile, memory prices are going up because of the demand for the new datacentres that will "feed" AI...

It looks just like another case of investing hard in a new technology to see some of those targets of investment disappear in the near future.