Since the launch of ChatGPT over three years ago, OpenAI has sparked a competitive rush resulting in skyrocketing valuations and massive investments in AI infrastructure. Unlike established rivals like Google, OpenAI lacks a steady revenue stream and has raised record funding, planning to spend over $1 trillion by the decade’s end. Skepticism looms as experts highlight a disconnect between lofty industry promises and actual performance, with former asset manager George Noble warning of potential disaster due to a staggering $12 billion quarterly loss. He cautions investors against OpenAI, highlighting diminishing returns and escalating costs for refining AI models. Noble likens CEO Sam Altman’s defense of the company’s finances to past corporate scandals, suggesting serious troubles ahead. Predictions indicate OpenAI could deplete its funds within 18 months, casting the company as a cautionary tale of hype rather than a failure of AI technology. Investors are advised to proceed with caution amidst these uncertainties.
Source link
