- Joined
- Apr 30, 2022
OpenAI Misses Key Revenue, User Targets in High-Stakes Sprint Toward IPO
The company’s CFO and board have questioned the wisdom of massive data-center spending in the face of slowing growth
https://www.wsj.com/tech/ai/openai-...ets-in-high-stakes-sprint-toward-ipo-94a95273 | https://archive.is/tXqKRA number of AI companies including Anthropic have faced a capacity crunch for computing in recent weeks, leading to price increases for access to AI processors, outages and rationing. The challenges have rankled power users of AI products, especially coders who have grown frustrated when AI systems have been unable to finish tasks in a way they had come to expect from past use.
OpenAI said in a recent memo to investors that it has been able to secure more computing capacity than Anthropic, giving it an advantage in reaching users. The memo, which was viewed by The Wall Street Journal, also addressed Anthropic CEO Dario Amodei’s veiled criticism of OpenAI at a recent business conference, when he said some companies had pulled “the risk dial too far” on data-center spending.
OpenAI, and all large LLM companies are starting to stare down the barrel of a gun. Each model continues using more computing power and energy. Thats bad because they are increasingly facing a capability ceiling, capacity and resource crunch with political headwinds looking worse as AI becomes divided among party lines. Theres a growing datacenter backlash and its not quiet either. These are no longer angry furry artists on twitter but real voting Americans with unaddressed concerns. As every AI company data center continues to push up the cost of energy, its going to be increasingly hard to pay back investors and stop the tide of angry locals and young people.
I foresee a rocky path for all large AI companies, so far the Trump has been a retarded boomer ignoring any of this while democrats are fumbling around trying to sharpen this into an election issue.
The smart money is in smaller niche AI companies with proprietary datasets, not these big whales. Banks and car companies have been bailed out, but AI is a different animal altogether.
