Artificial Intelligence

OpenAI Raises $110B From Major Tech Firms at $730B Valuation

Is OpenAI's $110 billion funding proof of AI dominance or a bubble destined to collapse?

Published 2 hours ago

OpenAI Raises $110B From Major Tech Firms at $730B Valuation

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Above: OpenAI CEO Sam Altman on Feb. 19. Image credit: Prakash Singh/Bloomberg/Getty Images

The Spin

Narrative A

OpenAI's historic funding round proves the company's dominance in AI innovation and shows why investors are so confident in the company's long-term success and the AI ecosystem it has created. Its strategic partnerships secure exclusive cloud distribution through AWS and massive commitments to cutting-edge infrastructure — positioning OpenAI as a clear leader in the AI race.

AInvest

Andy Jassy on X

Sam Altman on X

Narrative B

This funding round should be a flashing red light about the approaching peak bubble. OpenAI is burning billions annually while showing zero path to profitability. The circular vendor financing scheme has Amazon and Nvidia essentially paying OpenAI to buy its own products, creating an unsustainable house of cards destined to collapse when the cash runs out.

Where's Your Ed At

Joe Wrote on X

George Noble on X