Is Open AI’s Chat GPT on the verge of Bankruptcy? Speculation sparked amidst investment

Jersey City N.J., January 22, 2026

OpenAI, a US based artificial intelligence company behind ChatGPT, is holding discussions with Middle Eastern investors about a potential large funding round that could reach up to $50 billion. CEO Sam Altman was recently in the United Arab Emirates as part of those talks, the publication reported, adding that discussions remain preliminary and no terms have been finalized.

The fundraising push follows OpenAI’s $40 billion private financing round in 2025, which valued the company at roughly $500 billion, according to a report referenced by The Guardian in their analysis of highly valued private technology firms expected to consider public listings in the coming years.

Why scrutiny has intensified

OpenAI’s growing valuation has drawn renewed focus on the cost of building and operating large-scale AI systems, which require extensive computing infrastructure. Analysts cited by Tom’s Hardware, referencing a New York Times analysis, have warned that companies developing frontier AI models face prolonged periods of heavy spending before reaching profitability.

Separately according to a wire by Window Central, the internal projections reviewed by analysts suggest OpenAI could incur losses exceeding $10 billion annually, reflecting infrastructure and model training costs. These figures are projections and have not been yet confirmed by OpenAI.

Who is speculating and what they said

Public debate escalated after George Noble, a veteran investor and angel backer, posted a critical assessment of OpenAI on X, claiming the company was “falling apart in real time” and warning AI founders about unchecked spending and governance complexity.

Noble’s remarks were presented as personal opinions, not as evidence based on internal financial filings, and were widely reshared across technology media and social platforms.

Several technology tabloids subsequently amplified the criticism, publishing headlines suggesting OpenAI could face bankruptcy. 

What OpenAI has said

In response to growing public narratives around governance and financial stability, OpenAI published a blog post disputing claims made by Elon Musk regarding the company’s structure and intent, stating that several public assertions omitted key facts about its evolution and funding model.

The post did not address specific cash burn figures or fundraising talks but emphasized that the company continues to operate and invest in long-term research.

OpenAI: Facts vs Speculation

Confirmed

• OpenAI is in talks with Middle Eastern investors about raising new capital.
• The company previously raised $40 billion at a $500 billion valuation.
• AI infrastructure and model development involve high ongoing costs.

Speculation (clearly attributed)

• Angel investor George Noble has publicly warned about governance and spending risks.
• Analysts have projected heavy annual losses based on cost models.

Not supported by evidence

• There have been no bankruptcy filings, insolvency proceedings, or regulatory disclosures indicating OpenAI is at risk of collapse.
• Claims of imminent bankruptcy originate from media amplification and opinion-based commentary, not verified financial statements.

The debate surrounding OpenAI mirrors a broader reckoning in the AI sector, where even highly valued companies face pressure to justify long-term returns. 

Mansi Hake