OpenAI’s $665 Billion Spending Plan Signals Strong AI Demand, BofA Says
Bank of America told clients on Tuesday that OpenAI’s updated long-term revenue and spending targets point to a significantly larger artificial intelligence market than previously expected.
Citing fundraising materials, BofA analyst Justin Post noted that OpenAI is now targeting $283 billion in revenue by 2030. At the same time, the company expects cumulative compute spending of approximately $665 billion through the end of the decade.
According to Post, these projections reinforce the long-term AI demand thesis and indicate a broader revenue opportunity across digital advertising, e-commerce, and productivity software.
Profitability Pressures Remain
Despite the strong growth outlook, Bank of America flagged potential margin challenges. Reports suggest that inference costs — the expenses related to running AI models — quadrupled in 2025. As a result, OpenAI’s gross margin is projected to decline to 33% in 2025, compared with 40% in 2024.
Higher compute costs are driving increased infrastructure purchases, adding financial pressure even as revenues expand.
Advertising and Cloud Infrastructure Impact
Bank of America also sees OpenAI’s consumer platform evolving into a significant digital advertising competitor by 2030. Based on company projections, potential ad revenue could range between $45 billion and $75 billion by the end of the decade.
Such growth could create a modest revenue headwind of 1% to 2% annually for major tech platforms including Google, Meta, and Amazon.
On the infrastructure side, BofA highlighted opportunities for hyperscale cloud providers. OpenAI’s renewed focus on partner-led compute expansion may open additional capacity deals for companies such as Google and Amazon.
Established cloud operators, with strong cash flows and proprietary chip technology, are well positioned to compete for large AI infrastructure contracts.
Bank of America reaffirmed its positive outlook on the broader AI and cloud sector, stating that OpenAI’s revised projections strengthen long-term growth drivers across the internet and cloud ecosystem.
