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OpenAI could be on the brink of bankruptcy in under 12 months, with projections of $5 billion in losses
(www.windowscentral.com)
this post was submitted on 28 Jul 2024
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The thing that isn't really mentioned here is that the largest OpenAI investor is Microsoft, and most of the money OpenAI spends is on Microsoft cloud services. So basically OpenAI is an internal Microsoft capital investment. They won't let it fail, but they might kill it if it loses money for long enough.
Right, if they keep bleeding money on it, then the shareholders will eventually start demanding they shut it down.
MS has more leeway for loss leading capital investment than maybe any other company on earth
Question is for how long though. BRICS just introduced their own settlement currency, and I expect that the dollar based economy will start shrinking rapidly as a result of that.
These tech giants are extremely fundamental to the operation of the empire. The US will battle to keep them alive as long as possible.
I agree, but the specific flavor of snake oil can change over time. For example, LLMs are replacing the whole blockchain bananza, and we might see some new miracle tech show up in a couple of years as the shine starts wearing off the AI hype. If the economic conditions get tougher, then there will be more push to focus on tech that actually generates revenue as well.