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I don't think that was the main reason for people thinking OpenAI is going to collapse here. By far, the biggest argument was that OpenAI bet too much on compu
by aurareturn 7mo ago
I don't think that was the main reason for people thinking OpenAI is going to collapse here.
By far, the biggest argument was that OpenAI bet too much on compute.
Being unfocused is generally an easy fix. Just cut things that don't matter as much, which they seem to be doing.
- airstrike 7mo agoIt really wasn't. Most of the argument was around product portfolio and agentic coding performance.
- aurareturn 7mo agoThat’s just short term talk. The main thesis behind their collapse is that they won’t be able to pay their compute bills because they won’t have enough demand to.
- airstrike 7mo agoThat doesn't really track because their compute isn't like a debt obligation. The compute topic was more around how OpenAI, Nvidia, Oracle, and others were all announcing commitments to spend money in each other in a circular way which could just net out to zero value.
- scottyah 7mo agoNobody was talking about them betting too much on compute, people were saying that their shady deals on compute with NVIDIA and Oracle were creating a giant bubble in their attempt to get a Too Big To Fail judgement (in their words- taxpayer-backed "backstop").