OpenAI's data center chief Chris Malone has departed the company, marking the latest executive departure amid a major shift in its data center strategy. The move comes as OpenAI grapples with soaring compute costs and prepares for a potential IPO.
TL;DR
- OpenAI's data center chief Chris Malone has left the company, following a reorganization that saw his role downgraded.
- The departure comes as OpenAI adjusts its Stargate data center strategy and faces high compute costs, with a projected budget of $750 billion through 2030.
- OpenAI remains unprofitable and is eyeing an IPO next year, making its data center strategy a critical focus for investors.
What happened
Chris Malone, who was hired in March 2025 to manage OpenAI's data center build-out, left the company last week. Malone's departure follows a reorganization earlier this year that saw his role downgraded. He no longer reported to President Greg Brockman but instead became cohead of a technical engineering team under VP Sachin Katti.
In July, OpenAI promoted Uday Ruddarraju to chief technology officer of computing capacity, reporting to Brockman, while Brent Mayo, hired from xAI this year, was put in charge of keeping projects on schedule. These changes come as OpenAI adjusts its data center strategy, moving towards leasing entire data center facilities.
Why it matters
The exorbitant cost of data centers is a major reason why big AI labs have taken on significant investment. OpenAI's projected compute budget has increased to roughly $750 billion through 2030, up from about $600 billion. The company's data center strategy is crucial for supporting both customer demand and R&D efforts.
OpenAI remains far from profitable and has its sights set on an IPO next year. The company's data center strategy and executive changes will be closely watched by investors as they assess OpenAI's path to profitability and long-term sustainability.
Key facts
- Chris Malone left OpenAI last week after being hired in March 2025 to manage its data center build-out.
- OpenAI's Stargate data center project was unveiled in March 2025 with SoftBank and Oracle.
- OpenAI's projected compute budget is $750 billion through 2030, up from about $600 billion.
- OpenAI signed a 10-gigawatt data center lease in Ohio with SoftBank's SB Energy this month.
- The company is eyeing an IPO next year despite being unprofitable.
- Uday Ruddarraju was promoted to chief technology officer of computing capacity in July.
- Brent Mayo was hired from xAI this year to keep projects on schedule.
Context
OpenAI's data center strategy is a critical focus for the company as it seeks to balance the high costs of compute infrastructure with the need for massive computing power to support its AI apps, services, and R&D efforts. The departure of Chris Malone and the recent reorganization highlight the challenges OpenAI faces in managing its data center operations.
As OpenAI prepares for a potential IPO, its data center strategy and executive changes will be closely scrutinized by investors. The company's ability to manage its compute costs and execute on its data center plans will be key factors in its path to profitability and long-term success.
