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https://freedium.cfd/https://medium.com/predict/im-now-terrified-of-ai-and-you-should-be-too-4f6bb69bba71>
"I used to think the AI craze would naturally pass. Maybe cause a little
economic trouble when the bubble inevitably burst. But I don't think this
anymore. Instead, I now see this AI frenzy as a symptom of something far more
insidious, detrimental, and disastrous for society. Sound a little hyperbolic?
Well, let me explain.
A few weeks ago,
The Information revealed that OpenAI was facing potential
bankruptcy, as they were set to post a $5 billion loss by the end of the year.
Not only that, but their AI development program costs are set to soar from
around $3 billion per year to well over $7 billion per year as they try to
build larger, more capable models critical to their growth and survival. In
short, OpenAI was bleeding out and waiting to die. But, soon after this
revelation, OpenAI announced they were looking to raise $6.5 billion in
investment, valuing the company at $150 billion, or nearly double what it was
valued at the beginning of the year, and that it is attempting to secure $5
billion in credit from banks. If secured, this would only keep OpenAI afloat
for another year, at most. To make matters worse, there is plenty of evidence
that, even with these funds, OpenAI can't manufacture these improved models and
can't reach profitability (which we will discuss further in a second).
Surely, you'd think no one would give OpenAI this huge sum of money, right?
Wrong! OpenAI just announced they have raised $6.6 billion of investment from
Nvidia, Microsoft, Softbank, and Thrive Capital at a valuation of $157 billion
and secured $4 billion in unsecured rolling credit from the likes of JP Morgan,
Goldman Sachs, Morgan Stanley, Santander, Wells Fargo, SMBC, UBS, and HSBC.
So, why did some of the largest companies, investment firms, and investment
banks pump such a colossal amount of cash into OpenAI? Is it the business
opportunity of the century? Or is there something else at play?"
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
