Teeter harder, I need to upgrade my graphics card.
All the AI companies know it. The first to get caught out about it will stand to lose the most funding.
Hopefully, I will be able to pick up x4 RTX Pros and 2TB of DDR5 RDIMM after ClosedAI dies. I would like to run local open models like Kimi.
Qwen Next has been helpful in getting an old game to run on modern Windows - getting the graphics to render properly, adding support for Xbox shoulder triggers, and so on. While I probably could flounder my way through, just having the AI handle things as I sleep overnight is much appreciated.
The more AI power that individuals can own, the better it is for the everyday person.
Just burst already!
Uh oh…
Does this news have anything to do with the November elections?
I dunno, iheartmedia was heavily in debt for over a decade. I don’t think this bubble is popping anytime soon
Basically, the AI lab told backers to expect revenues approaching $50 billion — far shorter than the explosive $70 billion number reported previously.
Though that $70 billion figure was also based on leaked investor memos, OpenAI wasn’t in any hurry to deny it, digging itself into a $20 billion hole.
So they told investors they’d make $70b and now they’re bringing down the forecast to $50b . $50b is still insane, that’s more revenue then any other software company except Microsoft (and probably anthropic), next closest is Salesforce with $47b, and Salesforce built that revenue over decades. Open AI finished 2025 with $13b in revenue, that’s nearly 4x growth in a year on more then 10 billion in revenue, that has never been done before.
Idk if this is a sign of a bubble collapsing just because it’s record setting growth and revenue aren’t as explosive as they initially said. It is still very much explosive, but more a fission bomb then an h bomb.
50B is annualized revenue, accrued revenue will be almost certainly be quite a bit lower this year.
Tech companies love reporting ARR because it is always bigger than GAAP revenue (if the business is growing at all).
It’s not annualized in the traditional sense. They take their highest revenue day and multiply it by 365.
Good point. It is important to keep things in perspective.
Idk if this is a sign of a bubble collapsing just because it’s record setting growth and revenue aren’t as crazy as they initially said.
That’s because you’re thinking about the situation rationally, which isn’t something the market is known for.
“We have to stop AI before it kills everyone, but we need the government to do it so we don’t lose investors.”
Let it pop! Let it pop! No bailouts for billionaires. Just let the fucking system collapse. I’ll happily go back to a trade a barter system of some kind.
Pop pop pop!
I’ll be fine, my mortgage is fixed for 4 more years before any damage it causes to the economy can seriously effect me. That is a problem for me in 4 years time, not me today.
Sounds like it’s almost bailout time again.
I favor incarceration with no bail.
I favour incineration
This article conveniently ignores the fact that Anthropic is reporting a second profitable quarter to investors.
Yeah.
I don’t like Anthropic’s long term prospects, but OpenAI is specifically in trouble, near term.
Their whole premise was becoming a Facebook-style “where else are you gonna go?” captured market on the consumer side, and that is clearly not happening. They wanted an enterprise monopoly, and those business customers are looking elsewhere.
Their ass is cooked.
Even if openai tanked tomorrow it would just be bought by Microsoft and become copilot AI.
The failure of the company is bad for current investors but it’s not a public company and as others have mentioned there is not yet enough instability in the rest of the industry. Google is still trucking along without issue even if they don’t make the news and people are still giving Muse access to all their shit.
How long has AI been “teetering on the brink“?
Depends if your asking people who are informed or news headlines. The informed people have been saying the AI bubble is set to burst around Q2-Q3 2027. That’s when loan obligations come due and the majority of investors are set for payouts.
The news will say it’s happening everyday, just like Trump is just about to die everyday, or MAGA is “turning against him” everyday according to the articles.
Most of the historical boondoggles took about 5 years to work their way out. We are on year 3. If that’s any guide, we got a whole lot more electric boogaloo to play.
Most boondoggles don’t burn trillions of dollars. AI is starting to hit a wall already because there just isn’t any more money. It’s why there’s this desperate push to go public even though their financials are a dumpster fire.
As a percentage of Capex to GDP it’s about a third of way to where the railway mania was at during its peak. There’s room to run. The difference between then and now is that all the spending is concentrated in a handful of companies.
Rome hasn’t collapsed in a day.
Right. It’s literally everyday it’s brought up. Yet here we are, still using it, still funding the losses. Still funding the climate damage.
They are all looking for billions in new rounds of funding now. If they can get it the shitshow will continue. Looking at the stock price of SpaceX (an artificially inflated fantasy “AI in space” company owned by a Nazi) they will get it.
OK but they’ve been saying this for a couple years now. I’d love to see the hype recede, but I’m beyond the point of believing these speculations.
Yes we crashed the economy, but at least we made the C-suite and the sub level guys an absolutely eye-watering, astronomical amount of money while also increasing worldwide hunger and genocide.
Don’t forget climate change!
Yup…
😔
c-suite gets cut of everything, they should get their cut of hunger and genocide too.
Most of them have no security detail and are easy to find, just fyi.
