The $100B megadeal between OpenAI and Nvidia is on ice

https://archive.is/BXlAP

Not only has OpenAI's market share gone down significantly in the last 6mo, Nvidia has been using its newfound liquid funds to train its own family of models[1]. An alliance with OpenAI just makes less sense today than it did 6mo ago.

[1] https://blogs.nvidia.com/blog/open-models-data-tools-acceler...

Last paragraph is informative:

> Anthropic relies heavily on a combination of chips designed by Amazon Web Services known as Trainium, as well as Google’s in-house designed TPU processors, to train its AI models. Google largely uses its TPUs to train Gemini. Both chips represent major competitive threats to Nvidia’s best-selling products, known as graphics processing units, or GPUs.

So which leading AI company is going to build on Nvidia, if not OpenAI?

This video that breaks down the crazy financial positions of all the AI companies and how they are all involved with one called CoreWeave (who could easily bring the whole thing tumbling down) is fascinating: https://youtu.be/arU9Lvu5Kc0?si=GWTJsXtGkuh5xrY0

All these giant non-binding investment announcements are just a massive confidence scam.

I wonder how much the indications of Altman's duplicitous behavior through the deposition findings have been relevant here.

Interesting to see this follow the news of their plan IPO in Q4 just yesterday. https://www.wsj.com/tech/ai/openai-ipo-anthropic-race-69f06a...

In the distance, Uncle Sam groans as his phone rings

How is this legal for them to do to pump stocks

"the people said"

> He[Jensen Huang] has also privately criticized what he has described as a lack of discipline in OpenAI’s business approach and expressed concern about the competition it faces from the likes of Google and Anthropic, some of the people said.

Would be interesting to see how Oracle's CDSs react to this news.

will there be more 5090 FE cards at a lower price? one can only hope

The article references an “undisciplined” business. I wonder if this is speaking to projects like Sora. Sora is technically impressive and was fun for a moment, but it’s nowhere near the cultural relevance of TikTok, but I believe significantly more expensive, harder to monetize, and consuming some significant share of their precious GPU capacity. Maybe I’m just not the demo and missing something.

And yes, Sam is incredibly unlikable. Every time I see him give an interview, I am shocked how poorly prepared he is. Not to mention his “ads are distasteful, but I love my supercar and ridiculous sunglasses.”

And so it begins.

nvidia should buy OpenAI. I like Jensen.

Does this mean OpenAI won't be needing all that RAM after all...?

...and the merry go round stopped

[dead]

If the ice cream cone won't lick itself, who will?

OpenAI is too important to run out of cash. The gov will make companies invest.