4 ms·

Whether you love or hate OpenAI, the CapEx involved with this company will be viewed as historic in the future, and will change (has already changed) the paradi

• manquer 2y ago
  I think it will have an adverse affect to funding ecosystem. The inevitable haircut all the funds are going to take in OpenAI and other AI startups when revenue fails to materialize[1] will herald a bust cycle and lot more circumspection in large investments like it happened few years back when a large number of Soft Bank investments did not pan out, notably most of them relied on big funding rounds to muscle out other players, not all of them have failed but all of them lost of enterprise value for investors. --- [1] This is inevitable regardless of success of the space, either because cost of inference keeps dropping in combination with competing with high quality open weight models as DeepSeek, Stable Diffusion and others have shown. It will have strong downward pressure on pricing impacting both revenue and profit.
  • agent281 2y ago
    If it happens, I call dibs on the name "AI Nuclear Winter".
    • rasz 2y ago
      AI China Syndrome?
• piva00 2y ago
  It changed the paradigm negatively so far, it vacuumed so much money that anything non-AI is not getting much funding, it locked CapEx and now it's looking like there won't be a massive RoI for the capital spent. The AI hype might have as well setback a lot of other products that never got the necessary funding to get up from the ground, it's not looking pretty.