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OpenAI Is About To Make The AI Bubble A You Problem

The absurdity is palpable.

Will Lockett
Published in
5 min readSep 15, 2024

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OpenAI is set to implode. An investigation by The Information recently found that the company has burnt over $8.5 billion on staffing and AI training and is set to make an operational loss of $5 billion by the end of the year. As such, bankruptcy is a severe possibility for the AI giant. For reasons we will get into in a minute, I thought OpenAI had no hope in hell of stopping this inevitable flop. They have no viable way of drastically increasing their revenue, and if investors take even a customary glance at their business fundamentals and basics of AI, there is no way they would pile billions more into them. But it looks like I have egg on my face; as it turns out, OpenAI is in talks to raise $6.5 billion from investors, and secure $5 billion in credit from banks, paying for another six months of AI development, and their upcoming gargantuan loss. In effect, OpenAI is bringing the banks on board their sinking ship and making the AI bubble a problem for us all.So, why is the OpenAI ship sinking? It is still a young company, and its AI is predicted to get better and better; surely, it will only see colossal growth over the coming years.Well, while this is a widely held notion, it is far from true.
Will Lockett
Predict
Independent journalist covering global politics, climate change and technology. Get articles early at
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