Mallaby does praise OpenAI's CEO Sam Altman's dollar-attracting gravitational field that raised $40 billion in investment, an amount bigger than any other private funding round in history — even more than Saudi Aramco's $30 billion. The difference is that Aramco, along with other IPO'd enterprises, had a business model and profitability, neither of which OpenAI currently enjoys.
The AI financial ouroboros certainly looks poised to eat its own tail, but there's an argument that the ophidian will only lose its newer part. There would be some irony in the AI market losing one or more of the players that started it all.
Bruno Ferreira is a contributing writer for Tom's Hardware. He has decades of experience with PC hardware and assorted sundries, alongside a career as a developer. He's obsessed with detail and has a tendency to ramble on the topics he loves. When not doing that, he's usually playing games, or at live music shows and festivals. ","collapsible":{"enabled":true,"maxHeight":250,"readMoreText":"Read more","readLessText":"Read less"}}), "https://slice.vanilla.futurecdn.net/13-4-11/js/authorBio.js"); } else { console.error('%c FTE ','background: #9306F9; color: #ffffff','no lazy slice hydration function available'); } Bruno Ferreira Contributor Bruno Ferreira is a contributing writer for Tom's Hardware. He has decades of experience with PC hardware and assorted sundries, alongside a career as a developer. He's obsessed with detail and has a tendency to ramble on the topics he loves. When not doing that, he's usually playing games, or at live music shows and festivals.
justaboutenuf Admin said: OpenAI might be running out of cash as soon as mid-2027 OpenAI could reportedly run out of cash by mid-2027 — analyst paints grim picture after examining the company's finances : Read more they're expecting a 5 trillion dollar bailout … oh wait thats just for navidia, make it 50 trillion all in. they'll have their cake and eat it too. memory prices will finally crater right after the depression kicks in … and havva nice day everyone … Reply
TerryLaze justaboutenuf said: they're expecting a 5 trillion dollar bailout … oh wait thats just for navidia, make it 50 trillion all in. they'll have their cake and eat it too. memory prices will finally crater right after the depression kicks in … and havva nice day everyone … Nvidia has 60bil in cash right now (last quarter) , not in products that they have to sell for them to make that money (which is what they would loose if the bubble would pop) outright cash they have right now. They would not qualify for a bail out. Reply
bit_user Wow, Bruno Ferreira gettin' downright literary on us! : D Had to reach for the wiktionary, a couple times: garrote – Something, especially a cord or wire, used for strangulation. limerence – An involuntary romantic infatuation with another person, especially combined with an overwhelming, obsessive need to have one's feelings reciprocated. ouroboros – (mythology) A serpent, dragon or worm that eats its own tail, a representation of the continuous cycle of life and death. (I did know this one) ophidian – Of or pertaining to the suborder Serpentes; of, related to, or characteristic of a snake or serpent. I like it! Reply
bit_user justaboutenuf said: they're expecting a 5 trillion dollar bailout … Altman hinted at that, recently. https://www.tomshardware.com/tech-industry/sam-altman-distances-openai-from-data-center-bailout-talkI think the politicians won't go for it, after all the flak they caught from the 2008-era bank bailouts. Even though the AI industry crashing would be bad, I think it's not nearly as dire as a banking collapse would've been. The prospect of that happening was truly apocalyptic. Reply
-Fran- Mid-2027? That's actually later than I thought. I read once: "it's really easy to make dangerous bet when it's not your money". Sam Altman is doing exactly that and some are starting to realize the bet was horrible. Regards. Reply
DougMcC mid-2027 is fine for openAI, though, because they anticipate agi solving their financing problem before that. If they don't achieve AGI on that timeline, then, yes, they will be screwed. They are either right that they are on the right path, or wrong. Reply
Nomadish Im surprised only because 18 months seems too long. Sam Altman is a liar, he has a long history of it and no one should have trusted him to begin with. Remember loopt? Remember reddit? I just hope this Ponzi scheme dies before the pc market does. Reply
justaboutenuf TerryLaze said: Nvidia has 60bil in cash right now (last quarter) , not in products that they have to sell for them to make that money (which is what they would loose if the bubble would pop) outright cash they have right now. They would not qualify for a bail out. and the lawbreaking banks didn't qualify for bailouts in 2009 either … jenson isn't donating to trump for nothing … watch what happens … its more sam altman and the data center boys i'm talking about anyways … and btw i believe its "navidia" lol Reply
justaboutenuf bit_user said: Altman hinted at that, recently. https://www.tomshardware.com/tech-industry/sam-altman-distances-openai-from-data-center-bailout-talkI think the politicians won't go for it, after all the flak they caught from the 2008-era bank bailouts. Even though the AI industry crashing would be bad, I think it's not nearly as dire as a banking collapse would've been. The prospect of that happening was truly apocalyptic. they own the politicians … they will do as they're told … point being they will get their dream buildout no expense spared for free with our taxes … ai told ya so Reply
bit_user justaboutenuf said: they own the politicians … they will do as they're told Only to a point. Politicians know how angry the bank bailouts made people. It was one of the rallying cries of the Teaparty movement and helped fuel the flipping of Congress in 2010. Basically, if they think their chances at re-election will be worse if they pass a bailout, then they won't do it. Also, I just want to point out that most people got the wrong idea about the bank bailouts. By the time things reached the point where the bailout happened, there was no realistic alternative – the bailouts were the least bad option! The corrupt part about that whole mess was the deregulation that allowed the financial system get to the point where it was dangling at a cliff edge. Reply
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/big-tech/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/big-tech/openai-could-reportedly-run-out-of-cash-by-mid-2027-nyt-analyst-paints-grim-picture-after-examining-companys-finances#main
- https://www.tomshardware.com
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