OpenAI Is Totally Cooked
What a s**tshow.
By now, we all know that OpenAI is up a waterway of excrement without any means of propulsion. From their models being about as useful as a chocolate tea cosy that gives you psychosis to their ever-growing crushing financial losses, things are not looking good for Altman’s plagiarism machine company. But in recent weeks, the thumbscrews have begun to tighten on this saga, and the natural conclusion of this company is finally coming into focus. You see, the colossal flow of cash OpenAI desperately needs to stop itself from imploding is starting to evaporate, and soon this vanguard of the AI bubble could be consumed by its own cash burn. That’s right, OpenAI is in a far worse position than you think.
Microsoft Pullback
Let’s start with the quite frankly hilarious revelation that Microslop is moving to ditch the monster they created.
As reported by the Financial Times and Windows Central, Microsoft’s AI lead, Mustafa Suleyman, has suggested they are shifting away from their reliance on OpenAI. He said, “We have to develop our own foundation models, which are at the absolute frontier, with gigawatt-scale compute and some of the very best AI training teams in the world.” This implies they have realised specialist multi-model AI tools might be better than the general slop machines Altman has pushed.
To say this is surprising is a huge understatement. Microsoft was pivotal in the growth of OpenAI as an early investor, pumping tens of billions of dollars into the startup, securing lucrative deals with OpenAI and acquiring a 27% stake in their for-profit arm. This is why almost all of Microsoft’s AI products, like Copilot and its AI coding tools, are entirely based on OpenAI models. It is also why Microsoft is shoving AI down users’ throats so hard that many are fleeing to Mac or Linux — because the company needs people to use the AI they bet so heavily on. It is absolutely in Microsoft’s interest to support and collaborate closely with OpenAI rather than compete with them. Changing stance like this implies Microsoft acknowledges that it made a mistake on an unfathomable scale here.
This is utterly horrific news for OpenAI in three ways.
