Sam Altman and OpenAI Gasping for Air (Patreon)

There will be blood in this AI bubble....

It's been evident for months that OpenAI, under Sam Altman's leadership, has been burning through cash at an unsustainable rate—pouring billions into infrastructure while revenues barely scratch the surface of those costs. Their tech stack simply isn't stacking up against xAI's Grok, which is outpacing them in efficiency and innovation. To even have a shot at closing the gap, they'd need to double down on top-tier talent and streamlined compute resources. But that demands massive funding, and with an IPO off the table for now, they're hemorrhaging money faster than anticipated.

Enter the latest Hail Mary: As Bloomberg reports today, OpenAI's CFO Sarah Friar is openly pitching the U.S. government for loan guarantees to bankroll their $1 trillion+ AI infrastructure binge. Giving him money is like bailing out a zombie.....

Without a Govt Bail out, or a fresh capital infusion, OpenAI risks a swift implosion—revenues in the tens of billions this year won't cover the compute splurge of a trillion, and Altman's growth-at-all-costs mantra is hitting a wall.

I said OpenAI was not going to make it vs Grok - but damn, the unraveling is accelerating quicker than even I figured.