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Is OpenAI Dead Yet?

61 points| trickster_ | 1 month ago |isopenaideadyet.com

29 comments

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pseudony|1 month ago

Relevant, I would definitely be sleeping uneasy if I was at “Open”AI.

Some insist that Chinese models are a few generations behind, how many probably depends more on patriotism rather than fact.

Those people typically also insist that Chinese models are just distillations and often neglect to see how many of these companies contribute to the theory of designing efficient and capable models. It is somehow thought that they will always trail US models.

Well. i would say look at recent history. China worked up the ladder of manufacturing from simple, bad stuff to highly complex things - exactly what westerners then claimed they’d never be able to. Then as that was conquered, westerners comforted themselves by insisting that China could copy, but trail-blazing would always still be our thing. Well, Baidu and Alibaba face scaling issues few western companies do and BYD seems to match Tesla or VW just fine.

I am unsure why anyone would think US models are destined to remain in the lead forever.

At “best”, I see a fragmented world where each major region (yes also Europe) will eventually have their own models - exactly because no one wants to give any competitive power a chokehold over their society. But beyond that, models will largely be so good that this “generation”/universal superiority idea becomes completely obsolete.

Yizahi|1 month ago

Thing is, China has the same problems as OAI. Just looks at these two startups, they are one of the first LLM corpos where we have some actual numbers from accounting and not BS from marketing department or Sam's xitter. The situation looks dire.

https://imgshare.cc/wzw6jzm5

glimshe|1 month ago

A few months ago we were hearing that it was game over because of Deepseek. Today it has a mind share close to zero on the developed world. Being 90% as good (which Deepseek isn't) doesn't cut it...

US models might not be "destined" to stay in the lead, but I see no reason to believe that won't at the moment.

c-fe|1 month ago

As a retail investor mostly invested into broad ETFs (All World), is there any way I can get short exposure to OpenAI? Being short Oracle/Nvidia/Microsoft?

Yizahi|1 month ago

Shorting OIA, or really any big company, is like trying to stop a train which is on fire by standing in front of it. Yes, it is on fire and won't last long, but it will still crush any small player trying to overpower whole corrupt system.

trickster_|1 month ago

That's an excellent question. My fear is that it's going to be a little bit like putting a towel on a pool-bed on the Titanic...

helsinkiandrew|1 month ago

Not really that gives you much exposure:

If OpenAI is worth $5B, 4% of MSFT market Cap is Open AI.

ARK Venture Fund (ARKVX) holding is 7.2% of its total but also has xAI, Anthropic and lots of other AI

https://www.ark-funds.com/funds/arkvx#hold

OpenAI going bust might be a shock to shareprices of publicly traded companies like Oracle, CoreWeave, Softbank and the like

EDIT: obviously if OpenAI is worth $500B, not 5

trickster_|1 month ago

Tracking the demise of OpenAI through the news cycle

NitpickLawyer|1 month ago

Keep in mind that the "news cycle" isn't of much use in this field. For 2025, almost all "mainstream" media was dead wrong in their takes. Remember the Deepseek r1 craze in feb25? Where nvda is dead, oai is dead and so on? Yeah... that went well. Remember all the "no more data" craze? Despite no actual researcher worth their salt saying it or even hinting at it? Remember the "hitting walls" rhetoric?

The media has been "social media'd", with everything being driven by algorithms, everything being about capturing attention at the cost of everything else. Negativity sells. FUD sells.

9cb14c1ec0|1 month ago

No, they are not dead. However, they face incredible competition in a brutally commoditized product space.

keyle|1 month ago

AFAIK in some space they're still the best models on offer.

tsoukase|1 month ago

It will be the first application of the 'curse of Open company' rule: any for-profit entity that has the name Open in it is destined to go bankrupt.

maxglute|1 month ago

Is OpenAI profitable yet?

Will it be in time to recoop capex.