Is OpenAI Struggling? Will the Ellisons and Trump Be Affected?

Sam Altman’s OpenAI is facing a rapid downward spiral. Recent reports by Ed Zitron concerning the financial turmoil at the organization’s core have been validated by the Financial Times, while key executives are departing at an alarming rate—faster than Altman can declare, “IPO at a trillion-dollar valuation or nothing.”

There’s a lot of news to cover, so let’s get to it swiftly.

The Financial Times Confirms Zitron’s Findings

Familiar with Ed Zitron’s scoops on OpenAI’s fiscal health? If so, you’ll understand that it’s a dire situation for both Altman and the organization—and perhaps the entire LLM-driven economy in the U.S.

Here’s a summary of Zitron’s revelations confirmed by the FT:

OpenAI spent a staggering $34 billion last year as it aimed to secure dominance in the booming AI sector ahead of a planned public offering.

Audited financial data reveals that approximately $19 billion was allocated to research and development in 2025, while nearly $6 billion went to sales, marketing, and other operational costs.

These sharply rising expenditures provide rare insight into the economics driving the AI surge, particularly OpenAI’s extravagant investments in building models, financing data centers, and attracting leading researchers.

These figures, first disclosed to the FT by independent journalist Ed Zitron, indicate that OpenAI’s costs are significantly outpacing its revenues, which amounted to about $13 billion last year. By late 2025, their revenue hit $2 billion monthly, doubling from $1 billion per quarter at the end of 2024, marking one of the fastest growth trajectories in history.

However, this heavy spending has led to an astonishing increase in OpenAI’s net loss—from $5 billion in 2024 to roughly $39 billion in 2025. A source close to the situation noted that most of this escalation relates to a non-cash accounting adjustment tied to the company’s earlier structure, not its ongoing operations.

Before diving back into the FT’s source’s analysis, let’s review some figures from the WSJ, as reported by Gary Marcus:

In the quarter preceding its anticipated public offering, OpenAI recorded an additional billion dollars in revenue, yet compounded losses reached three billion dollars. The company lost about $1.84 for every dollar it earned—worse than the $1.22 figure Zitron had been citing for some time.

Returning to the FT’s informed source, they further clarify that OpenAI’s transition from a non-profit to a for-profit model to enable a $1 trillion IPO stems from a desperate cash situation. This transformation prompted the conversion of early investors’ “convertible interest rights” (not conventional equity), resulting in a staggering $41.55 billion charge.

Allegedly, this adjusts OpenAI’s losses down to “only” $8 billion—after “discounting” the charge and other non-cash expenses like staff stock-based compensation and Microsoft computing credits.

That’s akin to claiming “after subtracting my excess fat, skeleton, and musculature, I weigh a healthy 95 pounds.”

This financial bleed is likely the reason behind the exodus of top executives.

Executive Departures at OpenAI

In 2026, OpenAI experienced a significant number of senior leader departures, including former Chief Operating Officer Brad Lightcap, Applications CEO Fidji Simo, and Chief Revenue Officer Denise Dresser. Some exited to pursue new ventures, while others stepped back for health reasons.

• Chief Revenue Officer Denise Dresser started in December 2025 and left in August 2026.
• Chief Operating Officer Brad Lightcap began as CFO in 2018, transitioned to COO in 2022, and departed in August 2026.
• CEO of Applications Fidji Simo joined in May 2025 and stepped down in July 2026.
• Chief Product Officer, later VP of OpenAI for Science, Kevin Weil began in 2024 and left in April 2026.
• Head of Sora Bill Peebles joined in 2023 and departed in April 2026.
• Chief Technology Officer for Business Applications Srinivas Narayanan started in 2023 and left in April 2026.
• Chief Marketing Officer Kate Rouch began in December 2024 and stepped down in April 2026.
• Enterprise AI Sales Lead Barret Zoph returned in January 2026 after previously leaving in September 2024, and departed again in June 2026.
• Head of Ethics Chloé Bakalar started in August 2025 and left in July 2026.
• Head of Safety Systems Johannes Heidecke joined in 2021, took charge of safety systems in 2024, and left in July 2026.
• Chief Futurist Joshua Achiam began in 2017 and left in July 2026 after nearly nine years.
• Head of Robotics and Consumer Hardware Caitlin Kalinowski started in November 2024 and resigned in March 2026.
• Vice President of Sales for the Americas Kaylin Voss doesn’t have a specified start date but resigned in August 2026.
• Head of Data Centers Chris Malone began in March 2025 and left in August 2026.

Chris Malone was mentioned in the Business Insider article but not included in the count of exits, as reported by the WSJ.

Why an Upcoming IPO Shouldn’t Lose Top Talent

As Eli the Computer Guy emphasizes in his video on the OpenAI crisis, this situation is peculiar:

Eli states, “Viewers tell me, ‘Eli, this is typical before an IPO; you’re being overly dramatic.’ But here’s the thing: When preparing for an IPO, companies typically recruit seasoned executives who understand the requirements of publicly traded firms and what investors expect. A well-structured executive team is crucial for a successful IPO.

With OpenAI, however, this is perplexing. It’s a highly valuable company that has access to the best talent. And yet, experienced executives—who should be inclined to stay—are fleeing in droves.”

This trend poses serious questions about the future viability of OpenAI. The departures of seasoned professionals, who have substantial experience in technology and leadership, demonstrate a profound unease regarding the company’s direction.

OpenAI’s Risk of Dragging Oracle Down with It

Summarizing Ed Zitron’s mid-August article, “How Much Money Does AI Need?”, the contractual obligations OpenAI faces include:

• $750 billion compute through 2030 (WSJ)
• $50 billion in compute for 2026 (OpenAI’s figure from the Musk trial)
• Approximately $800 billion needed over three and a half years to meet all commitments (according to Zitron)
• $300 billion five-year deal with Oracle

OpenAI and Anthropic together need to raise over $1.1 trillion—last year, they managed to raise $217 billion combined. (WSJ)

Additionally, Zitron reports that the Stargate Abilene project, announced exuberantly by Altman, Larry Ellison, and former President Trump in January 2025, is significantly delayed.

Only three of the eight planned buildings have been energized and monetized, according to insiders.

Wisconsin’s Public Service Commission has tightened credit rules for large power consumers, leaving Oracle liable for a $7 billion collateral requirement for power guarantees at the Port Washington campus.

In August, the PSC unanimously revoked the “completeness determination” for the transmission project intended to power the site, forcing American Transmission Company to initiate the entire regulatory application process anew.

Amidst this, the financial burden on OpenAI’s backers, like Microsoft, appears more daunting than previously reported (WSJ).

pic.twitter.com/fhPjduAoHl

— Nat Wilson Turner (@natwilsonturner) September 2, 2026

Moreover, according to Zitron’s Hater’s Guide to Circular Financing, if OpenAI fails to reach a public offering, Nvidia might be compelled to extend at least another $10 billion to the organization. This claim ties to Nvidia’s $6.3 billion buyback of unused CoreWeave computing that has never been activated because much of the compute capacity is currently consumed by OpenAI.

Despite posting over $96 billion in revenue for Q2 of FY2027—growing 106% year-over-year—Nvidia faces challenges, as 70% of its receivables stem from just five customers. Late payment terms have been extended, showing potential issues with cash flow management.

Summarizing dozens of observations, industry expert Ed Zitron makes it clear: OpenAI encounters a serious fiscal crisis with potentially far-reaching consequences for its associates.

So How Much Trouble is Oracle In?

The answer is significant:

It’s not just that Oracle’s decisions seem ill-advised; the mainstream media took notice, as seen in a piece from CNBC entitled “Oracle is Building Yesterday’s Data Centers with Tomorrow’s Debt.”

Feel the weight of Larry Ellison’s burden:

Oracle secured the site, ordered hardware, and poured billions into construction and staffing, with aspirations of significant expansion.

“It’s a sensible decision for OpenAI, which does not seek older technology,” an Oracle spokesperson declined to comment.

For businesses developing cutting-edge models, even the slightest performance enhancements can create vast disparities in benchmarks and rankings. Such metrics are closely monitored and have a direct correlation to usage, revenue, and valuation.

However, the process of securing a site and powering a facility can take 12 to 24 months at minimum. Customers, eager for the latest innovations, track annual chip upgrades.

Oracle faces added difficulties as it is the only major player financing its growth primarily through debt, currently totaling $100 billion and increasing. In contrast, Google, Amazon, and Microsoft leverage their cash-rich operations.

Compounding the issue, Oracle’s partner Blue Owl has opted out of funding a new facility, and plans are in motion to cut up to 30,000 jobs.

Oracle has already announced layoffs affecting at least 20,000 employees, with further cuts anticipated, as reports indicate the layoffs reached critical departments such as HR, legal, and billing, impacting functionality according to sources familiar with Oracle’s operations.

The reliance of the Ellison Empire on OpenAI is more significant than ever, as indicated by these developments.

Furthermore, the current administration has shown a propensity to back OpenAI while showing hostility towards competing firms like Anthropic, creating a precarious situation with adversaries around.

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• Will the Trump Administration Fortify OpenAI and Save Softbank? (July 2026)
• OpenAI and Amazon’s Alleged Coordination Against Anthropic (June 15, 2026)
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• Weak Links in AI Twisted by Global Conflicts (April 6, 2026)
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• Larry Ellison’s Expanding Influence Beyond Oracle (August 11, 2025)