OpenAI Is Not A Real Company
Better Offline
Cool Zone Media and iHeartPodcasts
4.6 • 687 Ratings
🗓️ 26 February 2025
⏱️ 38 minutes
🧾️ Download transcript
Summary
In this episode (the first of a two-parter), Ed Zitron walks you through how OpenAI isn’t a real company, but a venture-backed welfare recipient that spent $9 billion to lose $5 billion in 2024 with little product-market fit and a stagnant API business that suggests that there’s little adoption of generative AI.
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Transcript
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| 0:00.0 | This is an IHeart podcast. |
| 0:02.5 | Guaranteed human. |
| 0:07.0 | New Year's resolution. |
| 0:08.8 | Own how you show up online. |
| 0:10.7 | It's easy with a domain and matching email from GoDaddy. |
| 0:13.7 | Now just 99 cents per month for new customers their first year. |
| 0:18.2 | Ring in 2026 with a domain and matching email at goaddy.com slash new year. That's go daddy.com |
| 0:25.3 | slash new year to own how you show up online. |
| 0:33.7 | Soul of an angel, body of a devil, chosen by God and perfected by science. |
| 0:40.0 | This is Better Offline, and I'm your host, Ed Citron. |
| 0:50.9 | Better Offline. |
| 0:54.0 | Now, we're working on my newsletter last week. |
| 0:56.1 | I was chatting with my friend, friend of the show, Casey Kagawa, about generative AI, |
| 1:00.1 | and we kept coming back to one thought, where's the money? |
| 1:03.5 | Where is it? |
| 1:04.0 | No, really, where is the money? |
| 1:05.7 | Where is the money that this supposedly revolutionary world-changing industry is making? |
| 1:10.6 | And, of course, we'll make in the |
| 1:12.3 | future. And the answer is simple. After hours of hours of grinding through earnings, of grinding |
| 1:18.5 | through media articles, of grinding through all sorts of things, I just don't believe it really exists. |
| 1:23.8 | It's real, but it's small. Generative AI lacks the basic unit economics, product market fit, |
| 1:29.7 | or market penetration associated with any meaningful software boom, and outside of open AI, |
... |
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