OpenAI Projects Burning Through $278 Billion by 2030

(Bloomberg) -- OpenAI expects that its negative free cash flow will reach $278 billion from 2026 to the end of 2030, according to a person familiar with the matter, citing materials shared in July as part of a major computing deal.

Though the company projects its revenue will increase from $36 billion this year to $350 billion in 2030, it is investing heavily in computing power and expects expenses to vastly outpace those gains, according to the person. The Financial Times first reported those numbers.

On Tuesday, Bloomberg reported that OpenAI has been holding early talks with investors about a fresh funding round that would value the company at more than $1.2 trillion ahead of an initial public offering. The FT first reported those talks.

OpenAI Chief Executive Officer Sam Altman told Fortune earlier that the company's long-anticipated IPO is still in the works but would not happen this year. The additional funding, if the AI giant takes it, would provide flexibility to potentially push back its IPO further, by one or two quarters, Bloomberg reported.

Another reason OpenAI could consider additional fundraising would be to support more mergers and acquisitions, Bloomberg reported.