Sam Altman, CEO of OpenAI, has long argued that technological breakthroughs are not just about innovation in hardware or algorithms—they are equally driven by innovation in financing. As OpenAI races to lead the artificial intelligence revolution, it has developed a series of complex, circular financial arrangements that have helped it secure billions in funding and computing power, even as the company continues to operate at a significant loss. From 2019 to 2023, Microsoft was OpenAI’s primary backer, investing over $13 billion. In return, OpenAI funneled most of that capital back into Microsoft by purchasing vast amounts of cloud computing services—creating a self-reinforcing cycle. This model allowed OpenAI to scale rapidly while deepening its partnership with Microsoft, which also benefits from the increased use of its cloud infrastructure. By the summer of 2023, however, OpenAI hit capacity limits with Microsoft’s cloud. To meet demand, the company began diversifying its computing partners. It signed a series of high-stakes deals with other tech firms, including Oracle and CoreWeave, a smaller but fast-growing data center operator. In one major agreement, OpenAI committed to paying CoreWeave over $22 billion for computing power, in exchange for $350 million in CoreWeave stock—stock that could later be used to offset future costs. As Microsoft’s willingness to invest further waned, OpenAI turned to new sources. In a landmark move, SoftBank led a $40 billion investment round. The Japanese conglomerate is also helping fund the construction of OpenAI’s own data centers in Texas and Ohio, with a total of $100 billion in capital being raised for the project. Oracle, meanwhile, has pledged $300 billion to build new data centers across multiple U.S. states, with OpenAI agreeing to pay roughly the same amount over the next several years to use them. The United Arab Emirates has also become a key player. G42, a state-linked technology firm, is constructing a $20 billion data center complex in the UAE for OpenAI, part of a broader investment round in October 2024. In a move that underscores the scale of the financial entanglements, Nvidia announced plans to invest $100 billion in OpenAI over the next several years. This funding will help pay for data centers, and in return, OpenAI will purchase specialized AI chips from Nvidia, which will then reinvest billions into OpenAI. OpenAI has also struck a unique deal with AMD, gaining the right to buy up to 160 million shares at just one cent each—valued at around $1.6 billion. This could give OpenAI a roughly 10% stake in the chipmaker, providing a future source of capital and influence. Despite generating billions in revenue from services like ChatGPT and AI coding tools, OpenAI still spends more than it earns. The company’s long-term viability depends on its ability to deliver faster, more powerful AI systems through its new infrastructure. If it succeeds, the model could become a blueprint for future tech ventures. But if progress stalls, the financial risks are enormous. Smaller partners like CoreWeave, which are taking on massive debt to build facilities, could face collapse. While some companies, like Nvidia and AMD, have options to scale back their commitments if the AI market underperforms, others may be left with unsustainable liabilities. These intricate financial webs highlight not just OpenAI’s ambition, but the growing fragility of a high-stakes, high-leverage AI economy. The success of the company may well depend on whether the technology can deliver on its promise—or whether the financial structures built around it will unravel.