If OpenAI becomes ‘Lehman Brothers of AI bubble’ - What happens to Microsoft, Nvidia, Oracle and Amazon?
Analyst Ed Zitron warns that OpenAI's potential failure could trigger a collapse in the AI sector, comparing it to the fall of Lehman Brothers. He argues that high infrastructure costs and limited advertising revenue make the current AI business model unsustainable.
Why it matters
The stability of the AI industry is tied to massive capital investments from major tech firms, making the sector vulnerable to market corrections.
“The AI bubble is actually an OpenAI bubble,” AI critic and researcher Ed Zitron says, arguing that the ChatGPT maker sits in the centre of today's AI boom. If it collapses, he warns, it could become “the Lehman Brothers of the AI bubble.”“OpenAI is the reason anyone cares about AI,” Zitron says and further adds, “you can talk all you want about open source models or Anthropic — but without OpenAI, the AI industry doesn’t exist, and the justification for trillions of dollars of capex evaporates.”Why OpenAI can fail?If OpenAI fails, it will be because LLM models are unprofitable, Zitron says.
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