Deploying 250MW for openAI by end of 2026?
How the hell would they achieve that? They barely have 35-50MW ready today - that means they would have to 5x their output in 8 months, or run the risk of renegotiating or worse, having openAI pull out of their contract entirely, It would be near impossible to execute. Most of their DC are “promising” 2027 readiness. The majority of valuation mostly comes mostly from the openAI contract, with UAE customers and hardware sales not even making the company close to the IPO valuation.
The stock would definitely dip if the targets aren’t reached, or more contract acquisitions don’t happen directly after IPO - their waferscale chip is only ideal for small-mid models, requires purchasing the whole CS-3 system to take advantage of the chip, has limited training etc etc.
Can anyone try to sell me on why this stock is still a buy at an IPO price reaching $160? The openAI deal just isn’t solid enough.
Edit: the 250MW number is from the S-1:
https://www.sec.gov/Archives/edgar/data/2021728/000162828026025762/exhibit1011-sx1.htm
250MW of Capacity by the end of calendar year 2026”, with an additional 250MW by end of 2027 (totaling 500MW), and a further 250MW by end of 2028 (totaling 750MW