Make no mistake: It is the largest asset bubble in human history. Bank of America flags elevated bubble risk in semiconductors. The cracks inside OpenAI are deepening, and the numbers don’t lie.

by

Just like the dot com bubble in 1999 where Nasdaq valuations went parabolic on internet hype before the brutal crash.



The cracks inside OpenAI are deepening, and the numbers don’t lie.

When your own CFO is sounding the alarm, something is seriously wrong.

Check this out:

1: OpenAI missed its target of 1 billion weekly active users, and missed multiple monthly revenue targets earlier this year, per WSJ

2: ChatGPT’s share of generative AI web traffic collapsed from 86.7% to 64.5% in just 12 months, while Google’s Gemini surged from 5.7% to 21.5%

3: CFO Sarah Friar has privately warned colleagues that OpenAI may not be able to pay for future computing contracts if revenue doesn’t accelerate, and has been excluded from key infrastructure meetings by Altman as a result

4: Friar is also pushing back on Altman’s aggressive IPO timeline, saying the company is not organisationally ready to meet public company reporting standards

5: OpenAI has committed to roughly $600 billion in future data center spending, projections show the company could burn $200 billion before reaching steady cash flow, even after raising $122 billion in the largest funding round in Silicon Valley history

6: Altman’s own board is now questioning his spending decisions, and court proceedings in Musk’s lawsuit to oust Altman and unwind OpenAI’s for-profit conversion have just begun

The biggest AI company in the world is valued at $852 billion, and its own CFO isn’t sure it can pay its bills.

OpenAI is the biggest retail trap of the last decade.

If you want to know where we’re deploying capital next, follow us with notifications on.

Many people will wish they followed sooner.

Semiconductors are the most overbought since the 2000 Dot-Com Bubble:

The S&P 1500 Semiconductor Index surged more than +36% over 18 consecutive winning sessions, before the streak ended on Monday.

This marks the most extreme momentum since the 1990s Dot-Com era.

As a result, semiconductor stocks are now trading more than 2 standard deviations above their long-term average, the biggest divergence in 26 YEARS.

Such an extreme gap has historically marked major short-term market peaks.

The last time momentum in any sector reached these levels, it ended in one of the most devastating crashes in market history.

The market is dangerously overextended.