Bank of America analyst Justin Post warns that major tech companies face a dual threat as they partner with OpenAI, the maker of ChatGPT. These partnerships, valued in billions with firms like Microsoft and Google, could either enhance OpenAI’s competitiveness or lead to cloud industry issues if the startup underperforms. Post emphasizes the paradox of hyperscalers funding a potential competitor while also forming alliances for strategic gains.
He identifies three rationales for these partnerships: driving Cloud AI scale, potential deeper collaboration, and manageable financial exposure. However, as OpenAI aims for $41 billion in new revenue by 2030—targeting advertising and eCommerce—it may compete aggressively with giants like Meta and Google. Though partnerships may yield short-term stock benefits, Post argues that the competitive risks to Big Tech in search, eCommerce, and enterprise AI outweigh the modest cloud revenue risks. Thus, OpenAI should be viewed as a significant competitive threat in the tech landscape.
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