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Inside OpenAI’s and Anthropic’s Finances Ahead of Their IPOs
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Good morning, CFOs. OpenAI and Anthropic IPOs in the spotlight; Middle East ripple effects; Paramount receives signed equity commitments of close to $24 billion from three sovereign-wealth funds.
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SpaceX took the stage last week, as we reported the company is aiming for an IPO that could raise between $40 billion and $80 billion, with a filing that put the company on track to potentially list shares by July.
Over the weekend, Berber Jin and Nate Rattner reported that OpenAI and Anthropic are racing toward potentially record-breaking IPOs by the end of the year.
Here’s a look at the financials of both companies, which shows an Achilles’ heel that we’re watching: the soaring costs needed to train new AI models.
What’s the issue? The costs of computing: OpenAI expects to spend $121 billion on computing power for AI research in 2028. That means the company anticipates burning $85 billion that year even after almost doubling sales from the prior year. Such losses would dwarf that of virtually any other public company in history. Anthropic doesn’t expect to spend nearly as much, but its rosiest forecasts tell a similar story of mounting computing costs.
Read on here for the details.
Related reading:
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Content from our sponsor: Deloitte
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Board Practices for the Year Ahead
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As directors face greater risks and expectations, a new report highlights top board agenda items and governance practices to guide leadership and oversight. Read More
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Monday
The Institute for Supply Management releases its services purchasing managers’ index for March.
Tuesday
Earnings: Levi Strauss
The Census Bureau releases the durable goods report for February.
Wednesday
Earnings: Applied Digital, Constellation Brands, Delta Air Lines and RPM International
The Federal Open Market Committee releases the minutes of its mid-March monetary-policy meeting.
Thursday
The Bureau of Economic Analysis releases the personal-consumption expenditures price index for February.
The BEA releases its final estimate for fourth-quarter gross-domestic-product growth.
Friday
The Bureau of Labor Statistics releases the consumer-price index for March.
The University of Michigan releases its consumer sentiment index for April.
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President Trump. PHOTO: Alex Brandon/Pool/AP
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Iran war fallout. President Trump threatened to destroy all of Iran’s power plants if the country’s leaders don’t agree to reopen the Strait of Hormuz by Tuesday evening, ratcheting up pressure on Tehran.
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Middle East ripple effects. Shares of Dow, LyondellBasell and other companies are rising as the war blocks competitors’ supply routes. “We’re seeing prices go up everywhere,” Dow Chief Executive Jim Fitterling said about polyethylene, a plastic that goes into detergent bottles, food packaging and many other goods.
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What Else Matters to CFOs
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Paramount defeated Netflix to acquire Warner. PHOTO: Justin Sullivan/Getty Images
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Paramount has received signed equity commitments of close to $24 billion from three sovereign-wealth funds led by Saudi Arabia to help back its takeover of Warner Bros. Discovery, according to people familiar with the matter.
Saudi Arabia’s Public Investment Fund has agreed to provide roughly $10 billion of the nearly $24 billion to Paramount, run by David Ellison, the son of billionaire Oracle co-founder Larry Ellison. The agreements with investors also include Qatar Investment Authority and Abu Dhabi’s L’imad Holding Co., the people said.
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The WSJ CFO Council convenes the world’s top financial leaders so they can gain perspective on navigating market uncertainty, aligning priorities and making decisions that deliver measurable results. Join this trusted community where CFOs exchange approaches, access strategic insights and continuously sharpen their influence across the enterprise.
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The Wall Street Journal's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics including corporate tax, accounting, regulation, capital markets, management and strategy.
Follow us on X @WSJCFO. The WSJ CFO Journal Team comprises reporters Kristin Broughton, Mark Maurer and Jennifer Williams, and Bureau Chief Walden Siew.
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