"OpenAI, which is behind ChatGPT and the video generator Sora, was founded in 2015 as a nonprofit that claimed to have ambitions to protect humanity from the potential harms of generative AI. Last month, the company wrapped up a long-awaited restructure that that turned it into a for-profit entity valued at $500 billion, despite the fact that its products have yet to yield significant revenue streams (which explains why ChatGPT can now be used as a sexbot)."
"However, corporate watchdogs warn the firestorm that erupted over Friar's comments is just the latest warning sign that OpenAI is becoming "too big to fail" as the industry aggressively lobbies at all levels of government to shift enormous financial burden onto taxpayers. The hype that initially inspired the investors to pump tens of billions of dollars into AI companies may be fading into flurry of negative headlines, and now fears of a bursting AI bubble are roiling markets worldwide."
OpenAI faced backlash after a CFO's social media post suggested pursuing government loan guarantees to finance advanced chips and data centers, then appeared to walk back that claim. Corporate watchdogs warn the company is pushing lobbying efforts to shift large financial burdens onto taxpayers and may be becoming too big to fail. Investor enthusiasm that fueled tens of billions in AI funding is cooling amid public gaffes and negative headlines, generating fear of a bursting AI bubble. OpenAI converted from a nonprofit to a for-profit valued at $500 billion, reports roughly $13 billion in annual revenue, and plans $1 trillion in spending over five years.
Read at Truthout
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