Legal French and Chinese Analyst OpenAIs Latest Investment Plan: Clear Roadmap for Computing Power Investment, Positive for Microsoft Corporation (MSFT.US) and Oracle Corporation (ORCL.US)

The stock research department of BNP Paribas, France, stated that the updated artificial intelligence (AI) infrastructure capital expenditure plan by OpenAI is beneficial to the super-large-scale cloud service providers Microsoft Corporation (MSFT.US) and Oracle Corporation (ORCL.US). It is reported that OpenAI plans to invest a total of $600 billion in computing power by 2030. OpenAI CEO Sam Altman had stated as early as October last year that the company plans to invest up to $1.4 trillion in infrastructure by 2033. BNP Paribas analyst Stefan Slowinski mentioned in an investor report, "In our view, these revisions do not necessarily reflect OpenAI becoming more restrained. On the contrary, the updated projections are broadly consistent with the previously announced commitment of $1.4 trillion in infrastructure by 2033, with capital expenditure still significantly concentrated after 2030. Considering that OpenAI may plan to invest over $200 billion annually in computing power by 2030, our rough estimates suggest that the initially proposed $1.4 trillion scale is still achievable." BNP Paribas believes that this update overall presents a positive outlook for major supporter Microsoft Corporation, as well as its main infrastructure partner Oracle Corporation. Stefan Slowinski pointed out, "With the cash burn outlook becoming clearer and OpenAI's financing of over $100 billion nearing completion (with an additional $80 billion needed to achieve free cash flow breakeven), we believe this reduces the risk of facing OpenAI as competitors in the short term for Microsoft Corporation and Oracle Corporation. The updated revenue expectations for OpenAI (with a target of $280 billion by 2030, an increase mainly from enterprise business compared to the previous $200 billion) also implies that if OpenAI can achieve its goal, Microsoft Corporation could potentially earn an additional $12 billion in revenue sharing by the 2030 fiscal year (4% higher than market expectations). However, it is still unclear if Microsoft Corporation and Oracle Corporation will directly benefit from this significant increase in computing power budget in the short term, especially with Amazon.com, Inc. reportedly participating in this round of financing."