OpenAI Annualized Revenue FAIL Cause AI Stock to Fall for NVIDIA, Oracle, CoreWeave - OpenAI is DEAD

SPEAKER_1 (0:00)

What if, what if, I'm just gonna pause at this for a second. What if the AI fraud that we have been going through over the past couple of years has been built on a thesis of dipshittery? What if the entire concept for the AI fraud that we have been building towards is built on just very, very, very stupid ideas? I'm just gonna put that one on the table for you. So I think this particular article is interesting coming from CNBC because it shows you how fickle investors really are. Remember, one of the things you have to be thinking about in the business world, as Dig Ziegler used to say, you sell the sizzle, not the steak, right? When you're dealing with investors, many of the times you're selling the optics, not the company itself, right? So that's where we had for a number of years, many technology companies were over-hiring. They were not over-hiring because they needed those employees to be ready for the future. They weren't over-hiring because any of those employees had any value, anything like that. They were over-hiring because optically, it looked good to investors. If your revenue isn't growing, if your profit isn't growing, if your user base isn't growing, if any other number isn't doing what you wanted to do, well, what you can do is you can go to investors and say, look, we just hired another 500 employees this year. So obviously, we're successful. And then the investors look at, well, well, yeah, I mean, look at how many people they hire. Obviously, they're successful. Here's another few billion dollars. And then we had Elon Musk with Twitter. Elon Musk bought Twitter, fired 75 percent of the staff. That is what it is. But the interesting thing, as soon as he fired 75 percent of the staff, then Metta started firing, and Google started firing, and every other tech company started firing, because optically. So one minute, they wanted to prove to investors they were successful. That's why they were hiring people, to prove that they're successful. And then the next minute, they wanted to prove to investors that they cared about investor money, so they started firing people. This has nothing to do with the core business itself. This has nothing to do with the infrastructure. This has nothing to do with the code. This has nothing to do with, you know, whatever, replication, scalability, any of that kind of stuff. This just simply has to do with the optics, trying to show the investors that you're successful. That's one of the things I talked about with a lot of these companies, trying to fire employees. When they were firing employees, a lot of them are saying they were firing them because of artificial intelligence, right? AI, AI. And as I said before, that's dumb. That was dumb. I said it at a time period, long before people started agreeing with me. And I said it was dumb because that just doesn't make sense, right? If you're actually going to be eliminating employees because of artificial intelligence, one, there would be just normal attrition, right? Basically people leave, but the efficiency that's been gained by the company with these new tools means you do not have to backfill a position. Essentially what should happen, if you're really decreasing headcount because of AI, essentially what should happen is you more or less just simply stop backfilling positions, right? As people leave, your efficiency gains are so much that you don't backfill a position. Maybe you eliminate some of the employees that you really know are bad, but unless you get that auto attendant moment, so the auto attendant moment, I've talked about that before with receptionists. So you go back 25 years, being a receptionist for a company was a real job. Auto attendants sweep in to the mid-size and small business world. But again, I come in, I install a telephone system for your company for $4,000. It has an auto attendant, press 1 for sales, press 2 for service, press 3 for whatever else. The moment I install that auto attendant system, there is no point to a receptionist anymore. All the receptionists get fired that day.

That's how real pivotal technology actually works. But again, if you look at most of this artificial intelligence crap out there, you got efficiency going. Again, I'm not saying it's force multiplier, it's increasing efficiency, it's doing some of that stuff. But we really have not seen a lot of auto attendant moment coming from the AI world. So when these companies are going out there and they're saying they're firing people because of AI, no, they're firing people because interest rates have gone up, they're firing people because they over-hired folks over the past couple of years, they need to eliminate employees in a way that optically looks good to the investors, and the investors still want to give the company money. And so that's one of the things that you have to be thinking about with investors, is they're really skittish based on how they see your company, regardless of how your company actually is. And so we look at this with CNBC, what's interesting, right? Nvidia, Oracle, CoreWeave, and other AI stocks sink on OpenAI Revenue Report. So the OpenAI Revenue Report just came out. They thought it was going to be $68 billion in revenue, came out at $50 billion in revenue. Now there could be some questions on how to properly view that number, but here's the thing, right? There is an expectation of $68 billion. There was the reality of $50 billion if this company, right? If one of the leaders in the AI space just took a 25%, 25, 30% haircut off of their revenue, then that creates a lot of questions optically about what are the values of all these other companies, right? If OpenAI brought in so much less revenue than expected, then if Nvidia is selling OpenAI GPUs, should Nvidia still be worth what it's worth? OpenAI has a $300 billion contract with Oracle. How confident do you feel about that if OpenAI takes a haircut? CoreWeave, these Neo clouds and that kind of thing. And that's where it's going to be very interesting over the next year as it becomes ever more difficult to shine the turd that is the AI fraud. Because here's the thing, you can shine turds. You can shine a turd. Oh, you can make a turd so shiny it will blind a motherfucker. Here's the thing though. Here's the thing though. You can't shine diarrhea. Shine diarrhea.