WSJ What’s News – How Will OpenAI Fund Its Multibillion-Dollar Ambitions?

Date: September 12, 2025
Host: Kate Bullivant (The Wall Street Journal)
Guest: Elliot Brown (Journal Reporter), with industry and academic quotes

Episode Overview

This episode examines OpenAI’s massive spending plans as it positions itself at the vanguard of the artificial intelligence boom—and the urgent question of how it will actually pay for its ambitions. The show also recaps OpenAI’s revenue realities, investment sources, and the risks inherent in betting on explosive future growth. The episode additionally touches on a new study about gender disparities in AI tool usage and covers major world news in politics and technology.

Key Discussion Points and Insights

Global and Business News Highlights

• Charlie Kirk Shooting Investigation (Utah):
  • Ongoing manhunt for Charlie Kirk’s shooter, with over 7,000 FBI tips.
  • Utah Governor Spencer Cox calls the suspect "this evil human being" (01:41), urging public assistance.
• Tariff Tensions:
  • China warns Mexico against proposed tariffs targeting Chinese goods.
  • Mexico aims to support domestic industry via tariffs on imports, especially autos, steel, and textiles.
  • US tariff revenue has surged, but as economist Kent Smet notes, it’s still “a small fraction” compared to the deficit (04:11).
• Brazil Political and Trade Drama:
  • Brazil’s Supreme Court sentences former President Jair Bolsonaro to 27 years for coup plotting.
  • US, under President Trump, escalates trade war with new tariffs and sanctions related to Brazil’s judiciary.
• SK Hynix Market Surge:
  • South Korean chipmaker SK Hynix’s shares soar on new high bandwidth memory chips for AI applications, with sharply improved data center efficiency.
  • PR Venkat explains the significance for global tech giants (06:36).

Deep Dive: OpenAI’s Billion Dollar Spending Spree

OpenAI’s Spending Ambitions (08:10)

• Planned Outlays:

  • $60 billion per year on computing contracts, including a major partnership with Oracle.
  • $18 billion committed with SoftBank for massive data centers.
  • Plans for a mass-market hardware device.
  • $10 billion for customized chips.

• Quote:

  "They've really racked up quite a lot of bills that they are on track to spend $60 billion a year..."
  – Elliot Brown (08:48)

• Key Insight:
  OpenAI is investing at an unprecedented scale, betting on a boom in AI demand and hardware infrastructure.

Funding Reality Check (09:15)

• Revenue vs. Costs:

  • On pace for $13 billion in revenue this year.
  • Annual losses persist due to outsize investments.
  • Business model relies heavily on anticipated rapid future growth.

• Quote:

  "It's basically just a really, really, really big bet that they're going to see revenue completely explode over the next few years."
  – Elliot Brown (00:52; 09:26)

• OpenAI’s “Bull Case”:

  • 700 million weekly active users (about 9% of the global population).
  • Revenue tripling year over year, unprecedented consumer and enterprise adoption.

• Notable Statistic:

  "Nothing has penetrated the world like this in technology before so quickly."
  – Elliot Brown (09:26)

Ongoing Uncertainties (10:30)

• Lingering Risks:

  • Commitments far exceed existing cash flow; funding primarily comes from private equity.
  • SoftBank has pledged $30 billion, but the private investment pool may be nearly tapped.
  • Reliance on ever-larger capital infusions could be unsustainable if revenue doesn’t keep pace.

• Quote:

  "The private market for raising money like that is not infinite. And Sam Altman has already tapped almost all of the biggest players..."
  – Elliot Brown (10:35)

• Doubts from Academics and Industry:

  • Reports indicate limited financial returns for businesses investing in AI.
  • Wide adoption by consumers, but enterprise adoption—and spending—lags.
  • Potential over-estimation of near-future revenue from the business sector.

• Quote:

  "Lots of people are using ChatGPT, but that doesn't mean it actually makes any money for companies. So consumers have been quick, businesses a lot slower."
  – Elliot Brown (11:42)

Press Context

• WSJ Disclosure (12:14):
  • News Corp, owner of WSJ, has a content licensing agreement with OpenAI.

Gender Gaps in AI Tool Usage (12:14)

• Study Findings:

  • Only 42% of ChatGPT’s 200 million users are women.
  • This figure drops to 27% for mobile users.

• Global Consistency:
  The gender gap persists across countries and user groups (students, business owners, etc.).

• Quote:

  "So you see a real drop when you compare men to women overall, and they found the same trend in... diverse groups."
  – Lisa Ward (12:55)

• Societal Concern:

  • The lack of gender diversity could introduce bias in AI systems.
  • Potential to reinforce stereotypes if mostly male data drives AI development.

• Quote:

  "If men are the primary users, gender value could exasperate gender biases or stereotypes."
  – Lisa Ward (13:21)

Memorable Quotes and Timestamps

• On OpenAI’s Big Bet:

  "It's basically just a really, really, really big bet that they're going to see revenue, the amount of money completely explode over the next few years."
  – Elliot Brown (00:52; 09:26)

• On Political Violence Response:

  "We want to make sure that they get as much attention as possible so that we can get help from, from the public in, in tracking down this, this evil human being."
  – Governor Spencer Cox (01:41)

• On the Limits of Tariff Impact:

  "It still only makes up a small fraction [of the deficit]... ultimately that revenue is coming from US households and US firms."
  – Kent Smet (04:11)

• On AI Gender Gap:

  "If men are the primary users, gender value could exasperate gender biases or stereotypes."
  – Lisa Ward (13:21)

Important Segments & Timestamps

• [00:33] – Headlines and today’s top stories
• [07:20] – Transition to OpenAI segment preview
• [08:10] – OpenAI’s capital commitments, partnerships, and hardware plans
• [09:15] – The funding gap and OpenAI’s reliance on future hyper-growth
• [10:30] – Concerns: risk, capital market limitations, real-world business adoption
• [12:14] – Gender gap in generative AI usage

Tone and Takeaways

The episode delivers a brisk, fact-driven analysis in trademark WSJ style—balancing cautious optimism about OpenAI’s growth trajectory with a reality check about the financial risks and market unknowns. It highlights the interplay between bold innovation bets and the sober realities of revenue, investment, and societal impacts.

For further details, the episode recommends WSJ’s ongoing coverage and their Tech News Briefing podcast for tech-specific updates.