OpenAI cut back on data center construction to ease investor anxiety ahead of the IPO

Short news version

OpenAI has scaled back its ambitions for building data centers (DCs) on its own and now plans to lease infrastructure from partners in preparation for an IPO in 2026.

CEO Sam Altman admitted that the previous approach of “unrestrained” expansion of computing power could not be fully supported by investors and the stock market. As a result, the company revised its project scale and investment cost plans.

1. Why OpenAI is changing strategy
What was it and why it changed: Independent construction of large DCs, component shortages, natural catastrophes, and tight deadlines – “everything is going off track” (Altman quote at BlackRock conference). Focus on own infrastructure. Investors view expenses as “reckless,” and revenue growth must cover capital costs. Plans for $1.4 trillion over 8 years. Revenue in 2023 was only $13.1 billion, raising investor concerns. Consequently, OpenAI decided to shift to a DC leasing model and focus on key development areas.

2. Funding plans
* Financial partners – Oracle, AWS (Amazon), Microsoft, Nvidia, SoftBank.

* Startups and investment agreements
* In September, Nvidia agreed to invest up to $100 billion; this year the terms were revised, reducing the amount and timeline.
* In February, OpenAI announced that by 2030 it would spend only $600 billion, with revenue expected to reach hundreds of billions of dollars.

* Stargate project – announced in January 2025 with Donald Trump’s involvement. It was planned to invest $500 billion over four years to build a DC in the U.S., but now the project is under discussion with Oracle and Nvidia.

3. What’s happening inside the company
* New applications director – Fidji Simo, hired last year, now leads priority areas to avoid “spreading” resources.

* At the all‑staff meeting, a new policy was announced: OpenAI will no longer build its own DCs. The largest facility in Texas is leased from Oracle.

* The second half of the current year plans to introduce the first gigawatt of computing power, but this will be achieved through partnership agreements with Nvidia and other suppliers.

4. Summary
OpenAI is moving from a “self‑construction” model to leasing and partnerships. This decision aims to reduce risks, accelerate IPO readiness, and attract investors who demand more transparent and justified costs. The company remains focused on key AI products while infrastructure will be provided by third‑party partners.