American billionaire and for Shark Tank investor Mark Cuban has sounded an alarm on OpenAI’s massive fundraising spree, saying the company may be in ‘deep trouble’ if its economics fail to deliver. As reported by Benzinga, speaking on the Big Technology podcast, Cuban criticised the pace of AI infrastructure spending, arguing that the returns may never justify the billions being raised. “They’ll never get it. They’re just sh****g away that money. It’s not that AI is not going to work; I think a lot of the numbers that they’re throwing out there aren’t going to come to fruition,” he said. OpenAI, led by Sam Altman, raised $122 billion in March at an $852 billion valuation, one of the largest private funding rounds in tech history.
Cuban on uncertain market structure
Cuban also Sais that it still remain unclear whether the large language model (LLM) industry will become a winner-takes-all market or a crowded space where models are commoditised. He also warned that niche-focused AI firms in areas like finance, healthcare and programming may struggle to build lasting moats since data can be accessed and trained by multiple competitors.
The fund-raising cycle
As per Cuban, the AI companies are stuck in a cycle of raising Monet and spending at scale to avoid falling behind. “You can’t keep on raising money because as it zigs and zags and you don’t know where it’s all going to go, if you’re not still raising money, you’re in deeper trouble because you don’t know if you’re the winner,” he said.He further criticized leading AI firms for fueling hype and fear to attract capital, overstating risks and job displacement. He compared the rhetoric to his own days at Broadcast.com, when bold claims were used to excite investors.
Mark Cuban who considered Bitcoin better version of Gold sold his holdings
Mark Cuban, who was once one of the most vocal evangelists for cryptocurrency, has revealed he has sold “most of” his Bitcoin holdings, saying the token has failed to live up to its promise as a hedge against global turmoil. According to a report by Fortune, Cuban who earlier described Bitcoin as “better version of gold than gold,” told Front Office Sports that the assets have not performed as per expectations. “When all the shit hit the fan with the Iran war, Bitcoin was always the best alternative to fiat currency losing its value, and I always thought it was a better version of gold than gold. Gold just blew up and went to $5,000. Bitcoin dropped … It’s not the hedge that I expected it to be,” he said.
