Financial Expert Says OpenAI Is on the Verge of Running Out of Money

https://finance.yahoo.com/news/financial-expert-says-openai-verge-200606874.html

42 Comments

  1. This article is actually WILDLY too optimistic about the potential capabilities of LLM’s. This is a Jonestown level KoolAide fan expressing doubt about OpenAI’s financial viability.

  2. He argued that OpenAI’s competitors, industry stalwarts like Google, Microsoft, and Meta, could use the money they earned from their legacy businesses to pour hundreds of billions into developing and scaling their AI models — while OpenAI doesn’t have that luxury.

    Mallaby is no AI hater. He’s extremely bullish on AI overall, arguing that “businesses usually take decades to deploy new technologies successfully,” whereas the AI industry has made “striking” progress in just three years.

    In other words, Mallaby isn’t betting against a growing AI bubble — he’s singling out his predicted winners and losers of the ongoing AI race. And despite becoming a household name after the launch of ChatGPT just over three years ago, he expects OpenAI to become a footnote in AI history less than two years from now.

  3. CelebrationFit8548 on

    The sooner the better as all it has done is punish ‘would be consumers’ just so AI can spew out ***the poorest and lowest quality products*** that they want to shove down peoples throats and force on everybody ‘at every bloody opportunity’. It is the worst ‘con job’ in history as they are trying to force people to accept such sub-standard mediocrity low quality products with zero value and pretend ‘there is something there’ that we can’t quite see.

    In it’s current form under the current leadership it is like CyberTruck on steroids that is way over hyped and significantly underperforming against any and all meaningful benchmarks, metrics and baselines. It really has ***zero value*** in the vast majority of use cases unless your wanting to sexualise minors, making CP and or make deepfake revenge porn.

  4. Oceanbreeze871 on

    Oh hey here’s the investor exit strategy.

    “After running out of cash, the researcher suggested that OpenAI could be “absorbed by Microsoft, Amazon or another cash-rich behemoth.””

  5. I have the free tier and some features like attachments have absolutely gone down in usability. They only give like 2 attachments in a 24 hour period seemingly.

  6. The tech industry is mature enough at this stage that anybody whose exit plan doesn’t involve selling out to META or GOOG is not gonna survive. The incumbents have more than enough free cash flow to outlast any startup that doesn’t generate positive operating cash flow. 

  7. OpenAI is just going to become apart of Microsoft.

    OpenAI need Microsoft’s cash flow and data centers, and Microsoft needs OpenAI cuz CoPilot is trash.

    Match made in heaven

  8. Holy shit I had no idea how much hate there was against this company/product/dude. I use chat daily and it’s frustrating and dumb at times but isn’t that just about all AI shit? Only thing I know about Altmann is him trashing Elon which I’m all aboard lol 

  9. my prediction and the prediction of others is that microslop will buy them in the next 6 to 8 months they have no money and no revenue coming in to make back their investors investments, meanwhile gemini just exists and google doesn’t need it to make money since they have other revenue sources , a lot of these ai companies are gonna be in the find out stage soon.

    ai is a freaking cool and useful tool and I wish these ceos would quit laying people off and blaming ai even tho they don’t even do any ai shit its ridiculous it makes people not even wanna use the damn tech.

    but yeah well see how this all ends up, I don’t see it being the end of the world lets be realistic our economy in the USA is ass right now and that’s the source of the lack of jobs and layoffs not ai. im optimistic tho lets see what happens

  10. HotPumpkinPies on

    So way things are going im assuming thr US treasury is going to donate like 2 billion dollars

  11. Let it implode. Let it send shock and shockwaves through the stock market. Let the panic ensue and the bubble finally burst. Then the world can begin to heal and people start to get employed again instead of these useless robots.

  12. The same thing was said every few months about Twitter in its first few years of popularity. Is how startups work, OpenAI isn’t going bust. There will _always_ be more money.

  13. StandApprehensive616 on

    In the past 3 months, I’ve noticed chatGPT is getting worse while Gemini and Claude just seem in a different league compared to it. Let it crumble.

  14. Ed Zitron has been talking about this for a while. OpenAI needs something like 1,000% increase in revenue in order to be profitable at some point in the future. The problem is that each new model is more expensive to run instead of less.

  15. I’m going to make a wild prediction.. They’re going to sell to palatir before they file for bankruptcy..

  16. InflammableAccount on

    Please? Please fail. And hard.

    I don’t have a single penny riding on any of this, but too many companies have spent too much money/accrued debt on this misguided unicorn chasing and it needs to be reset.

  17. You don’t have to be an expert to realize a company with more costs than revenue is going to run out if money

  18. Let it.
    For Christ sakes, what happened to bad businesses should fail?
    Governments should stop protecting failing businsesses and people should hold them to it.

  19. RationalDialog on

    Don’t they have a warehouse full of ddr5 to sell? That should keep them afloat for another year. /s

  20. Existing-Mulberry382 on

    Runs out of money, proceeds to order silica ore that isn’t extracted yet with money that Nvidia has not agreed to invest yet.

  21. On the verge? Just needs more money shoveled into it. These billion dollar data centers for a glorified search engine won’t build themselves.

    I do admit its ability to find stuff with small prompts, like an old book I read as a child, is very good.

  22. Braindead_Crow on

    Fail faster, fail harder, cause the computer part manufacturers billions in failed payments and billions in lost stock due to loss of investor confidence.

    Make parts plentiful again.