AI Bubble Teetering on the Brink as OpenAI Admits to Massive Financial Failure: A $20 billion setback.

Since I haven’t seen it yet in this conversation, I think I need to bring some better context to what this article is claiming.

No, OpenAI did not assume they were making $70 billion. They’ve always known their existing number. In fact, that number IS what was reported to investors.

The $70 billion number is coming from a specific investor that wanted to adjust the definition of revenue to get a more “apples to apples” comparison to Anthropic’s numbers.

When these companies license their models to hypervisors (AWS, Azure, etc), those hypervisors take a cut. OpenAI does not report that cut as revenue. This investor wanted to add it back in to get a “total demand for AI tokens” number.

They are 2 completely different metrics coming from 2 completely different groups.

Are you suggesting that The End is not, in fact, Near? And OpenAI is not about to collapse into bankruptcy, ending the entire AI ecosystem?

I wish more people realized AI is not going any where any time soon, regardless of their feelings on it.