As rumors of bankruptcy circulate due to massive quarterly losses at OpenAI, experts are strongly criticizing the company's failure in cost management and its unsustainable growth strategy.
Imagine a company that builds the smartest AI in the world is burning through an incredible amount of money every day. It is like throwing $15 million (approx. 20 billion KRW) into a giant bonfire daily. Recently, OpenAI, the center of the generative AI revolution, is facing a flood of doubts from investors asking, “Is this company really okay?” We shed light on the rumors of crisis hidden behind their dazzling $500 billion (approx. 660 trillion KRW) corporate valuation.
Why does this matter?
OpenAI is the company that showed the public the possibilities of generative AI (AI that creates new content such as text, images, and videos on its own) through ChatGPT. If this company falters due to financial difficulties, it could go beyond a single company’s problem and directly impact the future or costs of the AI services we use every day. In particular, some experts evaluate that OpenAI has now reached a level of being “too big to fail.” Source: OpenAI ‘falling apart’? Veteran investor flags ‘chaos’ at AI … In other words, there is anxiety in the market that if the company collapses, an “AI winter” could come, dealing a major blow to the entire AI ecosystem.
Easy to understand: A sports car that cannot stop
OpenAI’s financial situation can be compared to a “luxury sports car traveling at very high speed.” The car is traveling at 300km/h, but the fuel (operating costs) consumed to cool the engine is decreasing faster than can be handled.
Experts point out that OpenAI is currently in a structurally “chaotic” state. Source: OpenAI ‘falling apart’? Veteran investor flags ‘chaos’ at AI … Specifically, it is recording massive losses of $12 billion (approx. 16 trillion KRW) every quarter. Source: OpenAI ‘falling apart’? Veteran investor flags ‘chaos’ at AI … The fact that it costs $15 million a day just to run one app, ‘Sora’, which turns text into video, shocked many investors. Source: OpenAI ‘falling apart’? Veteran investor flags ‘chaos’ at AI …
In simple terms, criticism is emerging that current growth is closer to ‘economies of scale’ created by pouring in massive capital rather than the innovation of technology. Renowned investor Mark Cuban strongly criticized this, saying, “They are wasting money on a massive scale,” and that they will never get a return on investment. Source: OpenAI ‘falling apart’? Veteran investor flags ‘chaos’ at AI …
Current Situation
As of late 2025, OpenAI has adopted a for-profit corporate structure with Microsoft owning approximately 27% of the shares through restructuring. Source: OpenAI Valuation in 2025: Inside the $500 Billion AI Giant … Nevertheless, former Fidelity manager George Noble warns that the company is collapsing in real-time. Source: OpenAI ‘falling apart’? Veteran investor flags ‘chaos’ at AI …
According to financial analysis, a loss of up to $14 billion (approx. 19 trillion KRW) is expected in 2026 alone, and some analyses suggest that if the situation does not improve, it could face a bankruptcy crisis by mid-2027. Source: OpenAI ‘falling apart’? Veteran investor flags ‘chaos’ at AI … While it needs to grow its revenue 15 times more than now to survive, the market view is that growth is slowing down. Source: OpenAI ‘falling apart’? Veteran investor flags ‘chaos’ at AI …
What will happen in the future?
Experts believe that OpenAI has a chance of survival if it grows 15 times more than it is now within five years. Source: OpenAI ‘falling apart’? Veteran investor flags ‘chaos’ at AI … However, this is by no means an easy task. This is because it is in a dilemma where it must continue technological innovation while bearing massive operating costs. Now is the time for us to pay attention not only to the ‘technological glamor’ of AI but also to how solid the ‘economic foundation’ that supports it is.
AI Opinion
View of the MindTickleBytes AI reporter: The technology is amazing, but the business is ruthless. For OpenAI to succeed as a massive corporation beyond a simple research lab, a realistic profit model that no longer relies solely on investment funds is essential.
References
- OpenAI’s $1T Bullshit Is Falling Apart [video]
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[Nuxt HN OpenAI’s $1T Bullshit Is Falling Apart [video]](https://hn.nuxt.dev/item/48636348) - You Have No Idea How Screwed OpenAI Is - by Alberto Romero
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- Excessively low service fees
- Inefficient cost execution and massive losses
- Excessive government regulation
- Due to its technological monopoly
- To prevent systemic risks to the entire AI market
- Because it has already transitioned into a state-owned enterprise
- 10x growth in current revenue
- 15x growth in current revenue
- 20x growth in current revenue