OpenAI is a Ponzi scam operation
$150 billion of SMOKE
Are people BLIND? That’s a rhetorical question.
Is OpenAI actually going to make any money at all? That’s not one.
Have people already forgotten that OpenAI is poised to lose $5B before they (conveniently) raised $5B at $150B of fake nothing “valuation” to cover that loss?
Let me ask you this: Is it feel-good normal for you to borrow money to cover your losses in order for you to pay your bills? Would that bother you even in the slightest? Now, scale that up to the tune of 5 billion dollars.
This ludicrous state of affairs screams intervention, as in both the crazy people who are funding such lunacy AND the exact “company” that’s carrying out this outlandish SCAM need to be placed in a sanitarium for the criminally insane.
Remember, owing money is one thing- I mean heck anyone can do that. Paying back that chit by being net POSITIVE is another. A company is worth basically NOTHING if it couldn’t pay its debts. That’s what the talk called “bankruptcy” floating around OpenAI was about… and now it’s suddenly worth $150B when it needs to borrow money to remain solvent? Yeah. Either willful ignorance or an extraordinarily high level of tolerance for bullshit must be what’s still enabling this show to go on.
“Oh no no no OpenAI isn’t a scam” some-ones would face-fart the retort.
Um, how about “Ponzi schemes…” are those scams? What’d say them to those?
Let’s look at how OpenAI fits the description of a Ponzi to a T. I’ll use the definition from Investopia and go line-by-line:
A Ponzi scheme relies on a growing stream of new investors to create an illusion of profit.
Some of the new money is used to pay earlier investors, making the scam look legitimate and highly profitable.
These first two lines go hand-in-hand. See how OpenAI employees have managed to cash out by changing rules and selling their shares to later investors:
OpenAI has completed a deal allowing employees to sell stakes in the company, according to a person familiar with the matter.
The tender offer values the artificial intelligence startup at $86 billion, a price that makes OpenAI one of the most valuable startups in the world. Bloomberg previously reported the value and that Thrive Capital, the venture capital firm led by Josh Kushner, would lead the deal.
OpenAI and Thrive Capital declined to comment. The New York Times earlier reported some details of the deal.
The share sale was previously set for last year, but was delayed following the OpenAI board’s ouster of Chief Executive Officer Sam Altman in November. The company has since rehired Altman and is in the process of appointing a new board of directors.
…Notice the telling last paragraph. The employees all wanted Altman back after his ouster BECAUSE MONEY.
The early money was used to pay early investors and employees.
Most of the money is pocketed by the scam's operator.
The “operators” are the aforementioned employees, including Altman. Even though Altman has no direct equity in the company, he has indirect stakes through Y Combinator’s investment in OpenAI. Of course he could say “I have no equity” then!
All that could change for the worse (or much better, if you’re Altman) should OpenAI’s turn into a full for-phantom-profit crime organization comes to fruition and Altman is granted equity.
Nah, they won’t do it because that would look bad- Really bad. Altman has enough of a pile to drive a Regera around without it.
The scam collapses when the supply of new investors slows and the supposed profits evaporate.
While I don’t know about the supply of new suckers, the “supposed profits” aren’t there in the first place! It’s negative $5B “profit.”
Even if at some nebulous time in the future OpenAI manages to work through the immense costs of just running its models (not withstanding things such as employee salaries or just keeping the lights on at the office) Microsoft is going to take a whopping HALF of any profit (49% to be exact) that OpenAI could eek out! It’s only M$ that has any shred of hope of making any dosh out of this investment, and not the new suckers waiting downstream (Those suckers include you should your bank try to bail out OpenAI by contributing to that phantom $150B “valuation,” whether you consent to the suckering or not.)
If fans of OpenAI don’t see the grift by now, then they need to take off their blinders.