Key facts
- OpenAI's annualised September revenue was nearly $50 billion, down from previous signals.
- Data centre operator Firmus canceled a $5 billion IPO for private fundraising.
- SpaceX, Broadcom, and Oracle are expected to raise billions for AI chip purchases.
- Morgan Stanley estimates AI infrastructure will need $1.5 trillion in external financing by 2028.
- Brent crude futures remain above $100 per barrel amid the Middle East conflict.
- Euro zone finance ministers and the European Central Bank urged France to pass a 2027 budget to calm bond markets.
Investor concerns over the substantial capital required for artificial intelligence infrastructure and the extended timeframe for profitability are creating market headwinds. The demand for AI-related hardware and data centers is driving significant fundraising efforts, even as rising interest rates make financing more expensive.
Recent reports highlight this trend: OpenAI disclosed that its annualised revenue for September was nearly $50 billion, a figure lower than previously indicated. In Australia, data centre operator Firmus abandoned its $5 billion initial public offering, opting instead for private funding. Meanwhile, US companies like SpaceX, Broadcom, and Oracle are reportedly preparing to raise billions to acquire advanced AI chips.
Morgan Stanley projects that AI infrastructure will necessitate $1.5 trillion in external financing by 2028. This comes at a time when global interest rates are increasing to combat inflation, particularly from higher energy prices. The extended period before these facilities are expected to generate returns, coupled with investor demands for greater clarity on customer bases and cash flows, adds to the pressure.
Public sentiment towards AI is also shifting, with growing concerns about its potential existential threat. Geopolitical factors, such as the ongoing conflict in the Middle East, are keeping Brent crude futures above $100 per barrel. Additionally, elevated bond yields, driven by a prolonged global bond selloff, are increasing borrowing costs, with France facing particular pressure to present a 2027 budget to stabilize its bond markets.