OpenAI collapse incoming while hyperscalers bleed cash

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OpenAI could be heading straight for collapse and taking the whole AI narrative down with it like Lehman did in 2008. The losses are already massive and the spending justification rests on one fragile company.

Tech expert predicts an OpenAI collapse

If OpenAI goes down, the cascading effect could be devastating, he wrote recently.

The release of ChatGPT 3.5 in November 2022 was an indelible moment in the modern history of Silicon Valley tech.

Over the coming months, all of the SV big whigs would let the media and people know that the future had arrived, and the world would not be the same now that generative artificial intelligence had arrived.

The spending spree that has ensued since that moment has been unprecedented in its scale, though the return on that investment hasn’t matched the hype. While AI use and adoption rates are increasing among the general public, there is a significant and persistent cohort that is firmly anti-AI everything, from its use to the infrastructure it needs to operate, Forbes reported.

But that opposition hasn’t slowed anything.

Global AI infrastructure spending is expected to reach $758 billion by 2029, according to the International Data Corporation. That’s more than double the $300 billion spent in 2025.