OpenAI is not financially sustainable; they're burning billions, and somebody needs to fund this promise (or maybe $AAPL will acquire them).
Anyway, this can't last forever.
I'm afraid Sam Altman is going to learn WeWork's Adam Neumann painful lesson: a unicorn startup (and investors) and a public company (and investors) are very different ball games.
But the more interesting story if OpenAI collapses is the "bookings" in $MSFT, $NVDA, $ORCL, and others: it's a risky "game" they're all playing.
I'll be happy to hear your thoughts about an investment strategy (to be placed on hold) for this potential catastrophic day.
$MSFT, $NVDA: What if OpenAI can't pay the bills?
byu/rickyion inbusiness
Posted by rickyion
5 Comments
They can and will. They are gunna do another massive raise in the next 6 months.
OpenAI is doomed. Altman got his job because of cronyism and nepotism, and he doesn’t know how to actually run a company or be a leader. Angels have been throwing massive amounts of cash at OpenAI because of the hype. Partly because they are hype believers, partly because “create the hype and the profits will come”.
The fact is, AI just isn’t that good. It has uses, but the ROI is negative for 95% of implementations. Now investors and CEOs don’t want to look like jackasses, so they double down on the hype, hence the bubble grows daily.
Companies like Google, Apple and Microsoft will be able to turn a profit on AI because they can integrated into existing products, but OpenAI only has AI, which isn’t very useful by itself, just a novelty like fidget spinners.
USG will
Microsoft will gain control of the IP and integrate it into their products.
Too big to fail.
They’ll all run to suck on the govt teat and when confronted blather on about how ai is a national security issue and “compute” should be protected infrastructure paid for by the govt.
They LOVE using the “if we don’t, China will” excuse. It’s basically a perfect excuse for a blank check.
Basically FANG just became Primes.