The OpenAI Graveyard: All the Deals and Products That Haven't Happened (forbes.com)
147 points by dherls 4 hours ago
cmiles8 3 hours ago
This is important context in the wake of yesterday’s “raise” announcement. A lot of this stuff seems to just quietly never happen once the ink on the PR puff dries.
The AI industry increasingly looks in scramble mode to keep the hype going as those storm clouds of financial and business reality get darker and darker on the horizon.
cj 2 hours ago
For a company bringing a new technology from zero to mainstream, I think it's pretty normal that there will be a lot of failed attempts at productization.
The thing that isn't normal is the degree of experimentation relative to company valuation. Normally once a company reaches $700 B+ valuation, they've figured out their product and monetization strategy. ChatGPT is clearly still iterating heavily on that - not normal for a company that size.
mandevil an hour ago
And not normal for a company that has been at it this long.
The Apple II went on sale on June 10th, 1977. Visicalc went on sale October 17th, 1979- 860 days separate the two. ChatGPT was opened to the public on November 30th, 2022, which was 1219 days ago- almost 50% more time has elapsed than between the Apple II and Visicalc.
ianbutler an hour ago
skydhash 20 minutes ago
beachy an hour ago
ai-x 25 minutes ago
Which is a good thing. Elon has showed the world, the only thing that limits the upper bound is bureaucracy, extreme risk-averse and no culture for experimenting.
More and more companies will start operating on the correct reward/risk curve or else getting crushed by firms who do. OpenAI has forced Google, Apple, Meta out of their comfort zone because they know OpenAI will eat their lunch
mrhottakes 18 minutes ago
jmye 10 minutes ago
xnx 23 minutes ago
OpenAI != The AI industry
OpenAI has stagnated technologically, and is a financial zombie, but that's not true for every part of the industry. Once these early movers flame out, there will be more stability with Google, Microsoft, and AWS.
dgellow 3 hours ago
Anthropic does look healthier, with their enterprise focus. Or am I missing something?
cmiles8 3 hours ago
They nominally come across as a more stable ship with less clouds over its leadership.
However all of the major privately held AI players are struggling to paint a business and financial picture that doesn’t look “terrible” at best and “verge of market moving implosion” at worst.
For now the only thing keeping this all alive is more and more irrational cash being thrown on the pile in the faint hope that something stops the implosion from happening.
darth_avocado 40 minutes ago
> healthier
Correct. As compared to other AI companies. Tangible product, specific market segment and stable user base.
But whether it is worth a trillion dollars (like some of the peers are pretending to be) is yet to be seen. A lot of companies are using Anthropic products, but whether the spend is worth it, is also yet to be seen. A more realistic end state for Anthropic would be that they’d enterprise customers, with limited but steady spend due to Anthropic finally having to stop subsidizing tokens and a valuation in around $200-350B.
zer00eyz 2 hours ago
Outwardly it looks much better.
But between their token curtailment and time of day restrictions, and some of the clues in the code leak (regex for sentiment, telling the public client to be "brief") it seems like they are facing some capacity issues.
Im guessing that the accountants at all the AI incumbents drink heavily.
mpalmer 2 hours ago
Anthropic can't prop up Nvidia and the chip industry itself. If AI as an industry can't start turning a dollar into $1.05, a lot of stuff starts falling in value
therobots927 an hour ago
Relative to OAI they are healthier.
That isn’t saying much.
paxys 2 hours ago
If/when the bubble bursts Anthropic is going down as well. There's nothing unique that sets it apart from OpenAI. Their cash burn is similarly egregious.
adventured 3 hours ago
The LLM usage will generate hundreds of billions of dollars in ad revenue, which will be wildly lucrative in terms of margins (not as good as Google search used to be). If GPT is a leader in that, they'll take a sizable share of that pot.
There's a lot more money in being Google -> consumer ads, or Amazon -> consumer ads, or Meta -> consumer ads, than there is in being Anthropic -> enterprise.
Just take a look at the enterprise. Amazon's ad business alone is already a better business than Oracle or SAP or Salesforce, with superior margins, and it's growing faster too.
And of course everybody knows the Google & Meta ad monsters.
The only question remaining is who is going to extract all those LLM ad dollars, how will that break out. Right now it's Gemini and GPT in the obvious lead, with Anthropic in third, and Meta & Grok nowhere to be found (permanent situation for those).
operatingthetan 2 hours ago
rchaud an hour ago
steveBK123 2 hours ago
cmiles8 2 hours ago
iAMkenough 2 hours ago
Razengan 43 minutes ago
Holy f'n Hell, there's such a blatant bias on HackerNews in favor of Anthropic and against OpenAI.
I'm just a user, and in my experience Claude has been consistently crap compared to ChatGPT/Codex.
I use both side-by-side, and have paid for a ChatGPT subscription every month for around 1 year, but only 2 months for Claude; once last year, and again since last month.
Everything from the sign up, the sign in, the payment, the UI, the UX, gosh, just sucks on Claude.
And the AI itself: SO. MUCH. "OoPs you're right! I was mistaken" BACKTRACKING! It's downright DANGEROUS to listen to it! God I can post screenshots of working on the same project and the same prompts with both agents and prove how worse Claude is.
Of course this comment will be downvoted by Anthropic's paid PR machine, because there's no way actual users who have tried both products would be so in favor of Claude.
p1esk 34 minutes ago
sharadov an hour ago
The circular deals are getting old - it's like rearranging the chairs on the Titanic's deck.
therobots927 an hour ago
All the “raises” consist of “committed capital” and all of the revenue is annualized.
Welcome to dot com 2.0
nacozarina 3 hours ago
sell the roadmap, deliver a sku, sell/comp consulting services on escalations
the silicon valley shuffle, tried & true
andrewstuart 2 minutes ago
The future of ChatGPT maybe well be as a Microsoft product.
raincole 2 hours ago
> GPT-4o
Why is this on the list? Like... what? How about including GPT 3.5 and GPT 2 here too?
adrian_b 2 hours ago
In TFA it is put on the list because some of the users of this GPT version were discontent with its cancellation, which caused even OpenAI to oscillate in its decision, so they first cancelled it, then they resurrected it and then they cancelled it permanently, probably because continuing to run it would have cost more than the generated revenue.
Nothing similar happened when the earlier, presumably worse versions were discontinued.
aerhardt 25 minutes ago
It's Forbes, lads.
kingleopold an hour ago
Gemini models even in last month add this 4o to any text I can bet that that is added by Gemini :D
yalogin 22 minutes ago
The stargate, nvidia and amd deals are all linked together and the fallout is not public. Nvidia and amd stock seems to not care about it at all. Oracle fired 30000 employees, not sure if it’s to fund that initiative or a fall out of that
nope1000 35 minutes ago
What they really should focus on is making those models more efficient. With them most likely losing money on inference (+model training + salaries + building data centers), I can't see why they would want more compute and more products, since more tokens spent is actually bad for them.
MengerSponge 33 minutes ago
Making existing models more efficient won't make them God in a Box.
nope1000 19 minutes ago
True but neither will going bankrupt.
bcooke 40 minutes ago
They’ve lost a whole lot of people in prominent roles over the past few years. I wonder how much of the misfires and general thrash in product direction is a result of brain drain and/or so many hands changing. Or maybe I’m confusing cause and effect… hard to tell
guzfip 15 minutes ago
That’s pretty crazy, I swear it wasn’t that long ago these companies were about the only people hiring and the comp packages looked absolutely deranged.
For a brief moment I regretted wasting any time of my life on anything but ML research. But I guess the bigger they come…
woah 3 hours ago
My guess is Sam Altman is a better VC than CEO. Better at hype, networking, fund raising, and back room political hijinks than shipping a focused product
He seems to be trying to take almost a "venture studio" approach by throwing shit at the wall, but the problem with these things is always that the "internal startups" are "founded" by people who don't have enough incentive or control over their product to perform as well as an actual startup, and are distracted by internal politics. And frankly, it may also be that the really good founders will just do their own startup vs working on a quasi-startup inside a large org so there's some selection bias as well.
tokai 2 hours ago
What he would be truly amazing at is shitcoin rug-pulling.
paxys 2 hours ago
Isn't he already doing that with his Worldcoin thing?
jmkni 2 hours ago
I'd say he's a better CTO than CEO
mbesto 2 hours ago
He ran a small (30 employee) tech startup for 7 years
He was a partner at YC for 8 years
He has no research/PhD background in AI and is the CEO of an AI company
There is no objective data point in which he's a better CTO than a CEO
yanis_t an hour ago
It's missing the voice mode that never reached the level they demoed, and then gradually went to shit from that.
TimLeland an hour ago
Unfortunately I would bet OpenClaw is going to be on the list soon
jexe 2 hours ago
I'm not an OAI fanboy by a longshot - but I'd view lots of experiments that didn't work out as a healthy thing, especially for a company trying to find footing in a new industry.
shimman 2 hours ago
It's not an experiment if you publicly showcase and create tens of millions worth of marketing materials on it.
Usually company "experiments" are typically hush hush, not blasted on every corporate media channel as a means to boost your company holdings.
bigbuppo 3 hours ago
And if Forbes is reporting this, that means the actual movers and shakers were talking about this months ago.
et-al 2 hours ago
Keep in mind this is a Forbes "Site", so basically a personal blog with some minor vetting.
guzfip 14 minutes ago
Interesting. I never had much of an option on Forbes till a few years ago I noticed them posting nearly exclusively NYPost style clickbait. I didn’t think it was that bad of a publication.
fred_is_fred 2 hours ago
And that people are going to end up in jail - but only if they are under 30.
therobots927 an hour ago
I’m not a mover and a shaker. I just have critical thinking skills.
MisterTea 2 hours ago
Who is the person in the portrait at the top of the page?
adrian_b 2 hours ago
The CEO himself.
For some reason, he does not look like a man whom I would trust with my money, but it appears that there are enough rich investors who disagree.
MisterTea 2 hours ago
Threw me off because I have no idea what Altman looks like and the article opened with "OpenAI’s CEO of applications Fidji Simo..."
crispyambulance 2 hours ago
I think the VC/investor community needs to take A LOT of blame here. They've created an insane rush to financialize everything to moon at the drop of a hat.
I mean, even Andresson-Horowitz was taking NFT's seriously as though they weren't a scam only a few years ago (https://a16z.com/the-nft-starter-pack-tools-for-anyone-to-an...).
These people are also looking (and funding) quantum computing companies as though quantum computing is right around the corner after AGI.
They need to cool their jets. AI is certainly a worthwhile and super important development, but it's still possible to go overboard with it.
TimLeland an hour ago
Unfortunately I would bet OpenClaw will be on the list soon
guzfip 18 minutes ago
Lying is a virtue.
EGreg 3 hours ago
So is OpenAI on track to overtake Google for discontinuing projects?
Mistletoe 3 hours ago
Has there ever been a period o time where people saw a bubble coming and that we were in one, but it just inexorably refused to pop/drug out this long? This isn’t a rhetorical question, I’m wondering how this period compares to other irrational periods of the economy like railroad fever etc.
neaden 2 hours ago
Not at all, there is a famous saying (often attributed to Keynes but as far as I can tell he never said) “Markets can remain irrational longer than you can remain solvent.”
guzfip 13 minutes ago
“But can the markets remain solvent longer than I can remain rational” is the real question.
ceejayoz 2 hours ago
NFTs lasted a lot longer than they should have.
cmiles8 3 hours ago
It’s not been that long really. The dot com bubble was called a bubble for a while before it finally imploded. And just like now folks were in massive denial that it was a bubble.
One of the challenges here is that a lot of folks simply weren’t around then and haven’t seen what happens when everything implodes overnight. Those that have experienced it know what that looks like and know it will happen again.
bigbuppo 2 hours ago
It's no coincidence that daytrading ascended with the dotcom era.
banannaise 2 hours ago
Bubbles don't pop overnight. In the aftermath of any collapse, you can generally see a pretty clear pattern of red flags (and attempts to minimize them or cover them up). Some parties notice earlier than others, but the realization is generally a much more gradual process than the collapse.
simianwords 2 hours ago
The bubble bursting has almost become eschatological for deniers. Keep praying that it will happen. It won't.
banannaise an hour ago
That's also what NFT hypebros said.
moron4hire an hour ago
"Disney’s then-CEO Bob Iger... was sold on Sora, too. He lauded Altman’s ability to “look around corners”..."
WTF is that supposed to mean? I'm sorry, maybe I'm being dense. I can't figure out what "look around corners" is supposed to mean. "Think outside the box," I guess? Why "look around corners?"
I mean, maybe I do get it. Altman has a weird face that looks like you can't predict where his eyes are based on where his head is. "Shifty," one might say. But I doubt that's what Iger meant.
It's dumb. It's dumb corporate speak. I'm so sick of this kind of stuff getting a pass. We used to bully people over using the word "synergy." Let's make america anti-corporate-weasel again.
6510 an hour ago
Before he left I use to enjoy enraging a manager several layers above me. In one instance I explained that asking us to cut a few corners to get things done was fine, usually we can figure out acceptable ways of doing it. But then, it is your job to take those fake numbers and figure out how we are doing. No matter how much effort you make if bullshit goes in you know what will come out.
Now imagine an entire economy working like that. Like say, LLM's are good enough to run entire companies but you don't get to run a company because you are good at it. LLM's can perfectly manage employee schedules but the real job is more like marriage counseling or group therapy. Somewhere along the road we forgot which jobs make the economy go. They are probably the ones with the lowest salaries as those lack the effort of conjuring the job into existence.
Humanity needs obvious things cloths, food, housing, transportation etc but that isn't where the money is. The people cooking the books have the money and they are looking for something like a book cooking book. The market for openAI will be in lying convincingly for the benefit of the investor. Reality must be auctioned off like domain names or search engine placements. Altman is really the perfect guy for the job no one wants. ha-ha
Alternatively we could humble ourselves, ask the Chinese how reality works and attempt to steal their fu. It's just a thought.