Despite missing consumer targets, OpenAI is performing strongly on the product level and enterprise adoption is growing rapidly.

“But I have a contrarian take on this, which is I think that over the past week or two, if you look at kind of what's happening at the product level, it's been a pretty good couple of weeks for them.”

OpenAI can maintain its competitive advantage if it strategically deploys its new capital to improve model performance and extend its lead in applications.

“The bull case would be that the moat in the business with respect to model performance and infrastructure gets extended with the large amount of capital that they're raising they aggressively deploy it they are very strategic and tactical with respect to how they deploy that infrastructure to contin”

Sora was primarily a marketing stunt for OpenAI rather than a commercially viable product.

“I mean, to me, what it was was simply a a marketing stunt. It was it was a billboard. I mean, they clearly didn't do the groundwork ahead of time to deal with the licensing issues that they were obviously going to have with it.”

Sam Altman's leadership is effectively acting as a ruthless capitalist despite the company's moral claims, and the shift in focus after the launch of ChatGPT has been damaging.

“if you look at this thing as as important and big and transformational and literally worldchanging as all of these people say that it is and have been saying that it is since the beginning. Does it require a different kind of person to lead it a different kind of way?”

The company is a chaotic house of cards and its leadership under Sam Altman is deeply flawed and overly focused on fundraising rather than building a stable business.

“I tried very hard not to see this story as pure David confirmation bias. Um but I'm starting to feel like that the take that I espoused last summer which is that OpenAI is a house of cards and is about to collapse.”