OpenAI reports “incredibly positive” vibe as shareholder value sinks
Maybe vibe a bit less as your investors suffer, just as a matter of policy.
It becomes increasingly apparent that OpenAI is high on its own fumes. Celebrating “more compute” as something other than “a money incinerator” as its investors feel the pain.
Shares of several OpenAI backers and partners including SoftBank Group Corp., Oracle Corp. and CoreWeave Inc. sank on the news Tuesday. The Journal also reported that OpenAI Chief Financial Officer Sarah Friar has expressed concern that the company may not be able to afford its future computing needs if sales don’t grow fast enough.
The share moves underscore OpenAI’s central role in a complex web of investments and deals involving leading cloud computing providers and chipmakers. Investors had already been growing increasingly concerned about an AI infrastructure bubble, questioning the plans of OpenAI and other technology companies to spend hundreds of billions of dollars in the coming years on data centers and chips.
OpenAI said in its statement Tuesday that the company continues to see its push for more computing capacity as “the great enabler,” allowing it to “deliver a better product experience to our customers.”
The last few weeks have been filled with stories of product cancellations, focusing on their porn generator, and a general casting about for a business model. OpenAI now seems to be stumbling in its attempt to aggregate all the compute and is unable to either finish old data center deals or start new ones. All this while bragging about “more compute.”
Maybe vibe a bit less as your investors suffer, just as a matter of policy.
Does not compute.
AI gives me dot com vibes.