Is OpenAI in Crisis? Legendary Investor George Noble Shares Concerns About Sam Altman and Offers Insights for AI Startup Founders

Legendary investor George Noble, with over four decades in asset management, warns of significant turmoil at OpenAI. In a viral post, he describes the company as “chaos dressed up in a $500 billion valuation,” pointing out alarming trends including a drop in ChatGPT traffic and massive quarterly losses of $12 billion. OpenAI’s “Code Red” memo highlights fierce competition from Google’s Gemini, which has gained substantial user traction. Noble expresses concerns about OpenAI’s unsustainable financial model, predicting potential losses of $143 billion before profitability. He emphasizes that incremental improvements in AI now require disproportionately higher investments in infrastructure. The departure of key executives exacerbates these challenges, and with Elon Musk’s lawsuit threatening further turmoil, Noble advises AI startup founders to consider exiting while the market is favorable. He recommends shifting focus to sectors with sound fundamentals, as the AI hype cycle reaches its peak and valuations deviate from reality.

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