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https://freedium.cfd/https://wlockett.medium.com/you-have-no-idea-how-screwed-openai-actually-is-8358dccfca1c>
"It is almost funny how the world has only just cottoned on to the AI bubble.
Every time I read the news, it feels like an arsonist complaining that the
building is on fire. Every major banker, venture capitalist, financial pundit
and media outlet that made AI hype their entire personality a year ago is now
warning that when the AI bubble pops, it will crash our economy. Great… And
whose fault is that, exactly? But what I find truly fascinating about this
sudden snap back to reality is that it is totally surface-level. For example,
none of these people have even tried to look under the hood of OpenAI, which is
overwhelmingly responsible for this bubble. That is almost offensive, because
they could probably build a mass grave with all the skeletons in their closet.
So, let's dig into OpenAI and put a name to these ghouls so terrifying no one
can talk about them.
Earlier this year,
The Information analysed OpenAI's predictions and found
that they were on track to post a $14 billion loss in 2026 (read more here).
This was on the heels of OpenAI nearly going bankrupt and experiencing a $6
billion investor bailout at the end of 2024. So, needless to say, if losses
grew to that level, OpenAI would be seen as a doomed venture.
Well, recently,
The Information posted another report on OpenAI and found
that in the first half of this year, they made $4.3 billion in revenue and
posted a net loss of $13.5 billion. So, in the first half of this year, OpenAI
lost as much money as they were predicted to lose for the entirety of next
year! This means that OpenAI is losing about three times more money than it's
earning and is on track to post a $27 billion net loss by the end of the year!
Or, to put it another way, OpenAI's 2025 revenue is on track to only be $3.1
billion more than last year, while its annual operational costs are set to be
$24.1 billion more than last year. So, for every dollar of revenue growth
OpenAI has, it is costing them $7.77!
I cannot stress how unprecedentedly dreadful that is. It shows that the
promised future investors were piling their money into is a fairy tale. This is
a money black hole."
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
