OpenAI Is Utterly Desperate

LLMs were supposed to change the world. We were promised they would cure cancer, augment scientists, make office jobs a thing of the past, and reach superhuman levels of intelligence. But now we can see that was all total bullshit. AI tools are too inaccurate to boost productivity through augmentation, let alone automate jobs or even resemble a thinking thing.

To make matters worse, it is becoming increasingly clear, day by day, that these models are not going to improve, given that their returns are diminishing at lightning speed (read more here). On top of that, no AI company is even remotely profitable, and the market leader, OpenAI, is actually getting further and further away from profitability (read more here) as its costs skyrocket and its revenue growth stalls due to people realising these tools are legitimately crap (read more here).

OpenAI has an interesting problem. The only thing their product can do is mimic what already exists, as that is what generative AI does: it takes data and extrapolates trends within it to create something derivatively “new”. It can inherently only create things that are worse than, or nearly as good, as things that are already out there.

So, how can you compete in a market with a worse product?

Well, by either undercutting the competition in price, flooding the market to drown out the competition, or doing both. That is how Uber and Airbnb grew their businesses, despite the fact that their product is arguably worse than booking a proper taxi or hotel.

OpenAI is attempting to do exactly the same thing by allowing the rollout of“erotica” to verified adults, as well by launching its Atlas Browser and Sora social media site.

OpenAI is not stupid. . . .They know Atlas, erotica and the Sora app won’t save them from their inevitable cash crunch. But they know it will delay it.

These aren’t products or business plans; they are fodder for the AI hype machine.

Their promises of worker replacement are dead on arrival (read more here); criticism, accountability, and a value crash are just around the corner.