Monday, December 1, 2025

World’s Largest AI Conference Labels Sam Altman’s OpenAI as a Potential ‘Flop’

At the Cerebral Valley AI Conference, OpenAI was voted the second most likely “billion-dollar AI startup” to fail, highlighting a shift in perception among industry insiders. The informal survey, conducted by journalist Eric Newcomer and involving over 300 attendees, indicated that while OpenAI remains a prominent name in AI, concerns about its valuation and infrastructure costs are rising. Participants expressed a willingness to invest in competing startups like Anthropic and Perplexity, with Perplexity emerging as the most backed company. These findings suggest growing caution among AI professionals regarding the sustainability of major players in the sector, amidst discussions of an AI bubble. OpenAI’s CEO Sam Altman defended the company’s valuation, asserting strong investor interest despite skepticism. The results emphasize that even with substantial investment in AI, doubts linger about the long-term success of these startups, making this survey a notable reflection of shifting investor sentiments in Silicon Valley.

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