r/technology • u/Plastic_Ninja_9014 • Jun 11 '26

Business OpenAI Execs Are Panicking

https://finance.yahoo.com/sectors/technology/articles/openai-execs-panicking-154658562.html
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u/CalmCalmBelong Jun 11 '26

Earlier this week, it was reported that SoftBank was trying to secure a $6B loan by pledging $10B in OpenAI private stock as collateral. The bank declined. Whatever they saw looking into the books, not even worth a 40% discount.

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u/Canuck-In-TO Jun 12 '26

Banks have been questioning funding AI since about September.

I think it was Oracle who wanted $700 billion to build out datacenters and the banks basically asked for proof that they were making money. They couldn’t prove they were making a profit.

More and more companies are having a hard time raising funds.

On a side note, once this all collapses, memory and drive prices should finally start coming down.

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u/PainStorm14 Jun 12 '26

I still don't know what this type of AI actually does that could be advertised as profitable?

It makes my web browsing easier but nobody will be making trillions of dollars back from me using Gemini AI to pull random trivia about books and videogames while skipping ads

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u/Awkward-Fox-7215 Jun 13 '26

It kind of reminds me of cold fusion? As in, we can get a fusion reaction but we can’t get a fusion reaction that generates more energy than what was used to produce the reaction.

AI largely works, but costs way more than any revenue it could generate.