OpenAI - a systemic risk to the tech industry?

Despite a $40 billion funding round, only $10 billion is secured, with the rest contingent on converting to a for-profit model. OpenAI is burning billions, potentially $14 billion in 2025 alone, due to high compute costs and infrastructure investments like the Stargate data center. SoftBank’s financial health is also at risk due to its significant investments in OpenAI, leading to potential asset sales. OpenAI’s high spending and increasing costs raise concerns about its long-term sustainability.

Check out Edward Zitron’s insightful article: OpenAI Is A Systemic Risk To The Tech Industry