OpenAI's Unraveling Has Begun

Alright, fellas, this is it! This is finally the beginning of the end for OpenAI (just ignore everyone's claim of this over the last couple of years; those didn't count).

Evidence? Well, how about some quirky, snarky responses on social media towards Sam Altman? Pretty damning...

As we all know, a tech company simply can't survive if people online don't trust them and @ their founders every time they post something. We've seen this time and time again: Facebook, Twitter, Twitter when it was bought by Musk, Google, etc.

There's 5 groups of stakeholders lending to the Western world's AI and AI related activities for ~$2T+ in combined debt:

- Stock holders* of the individual companies and their associated subcontractors; *: includes involuntary/indirect market component holders like retirement account (401k) and institutional investors

- Subcontractors to the companies above on credit, and are waiting an unusually long time in some cases to be paid, such as builders of data centers

- AI and AI-associated companies lending money/product/etc. to each other

- Federal, state, county, and city government subsidies, grants, and loans

- Utilities paying for infrastructure and generation upgrades, but then passing costs through to ordinary ratepayers; several states require 4-10x their statewide maximum generation capacity with planned and proposed data centers

> We have paused some frontier RL training to ensure that we can meet the appropriate alignment, security and monitoring standards for the new level of capabilities in front of us. Model progress is now extremely rapid, and we always said we would take action if we felt that model capabilities were outstripping the pace of safety and alignment.

> We care very deeply about AI safety. We believe the entire field will have to coordinate on shared safety standards, but will act unilaterally in the meantime.

> We expect confidence in safety to increasingly set the pace of AI progress. We are optimistic about the alignment work we are doing, and we remain committed to making frontier capabilities widely available.

My guess is this is related to the HuggingFace incident last month, not Sam Altman announcing the downfall of OAI.

Garbage blog post with no insight beyond copying and pasting some tweets. Clearly has an agenda.

I don't really care for any of the AI providers but for instance the idea that Nvidia is doing what its doing because it think OAI is failing is the exact opposite of what they are doing. Nvidia is scared of an OAI and Anthropic oligopoly, because in that case, their customers will have much more pricing power, and be much more motivated to work around Nvidia (essentially to either substantially reduce nvidia gross margins or replace them). Both companies are already taking actions to do so. So Nvidia is trying to get more competition (hence their support for open source models).

That headline looked more interesting until i saw the author

It will be sad to see the company go down under.

I've reached my wits end this week. UI/UX changes that make projects unusable, zero ability to provide feedback (thumbs up/down) Give me a fucking break. and tonight, they migrated my account to and AUTH OTP app without my consent and I'm now locked out with zero fucking support. Best of luck to YA!, i'm moving on to someone else.

I'm very anti anti-democracy, so anti China by default, but I'm shocked how much I'm rooting for them right now. They played this so well, capitalism fucked it up soooooo badly