The rise of AI is many things: technological, sociological, political, even teleological.
But perhaps above all, it’s financial. When OpenAI released ChatGPT back in late 2022, it quick picked up enormous user traction — and moneymen across the tech industry immediately started scheming about how to cash in from the rush of interest.
The model they coalesced around hinges on gigantic investments in computing infrastructure to power the tech. It’s high risk and high reward: in their telling, the investments will pay off massively as the tech matures to automate huge swathes of the labor market, but some critics fear it’ll never generate enough revenue to justify the incredible spending.
Nobody is more exposed than the Japanese investment company SoftBank, which has poured an eye-watering $60 billion into OpenAI over the past few years.
According to explosive new reporting by Bloomberg, even certain insiders at the company are rattled. Viziers of founder Masayoshi Son have privately questioned what will happen if the Sam Altman-led company can’t pull off its grand promises — and Son’s reaction has apparently been so “brusque,” in the publication’s wording, that they eventually gave up.
What’s clear from the reporting is that Altman has done what he does best: turned Son into a true believer in his vision of computer superintelligence that causes profound shifts for the entire course of civilization.
Habib Imam, a former SoftBank insider who’s now at Menlo Park Capital, told Bloomberg that it’s fundamentally a “bet on a worldview about AGI,” adding that “you can’t hedge a worldview.”
The reality is that Son’s track record is dodgy. He made a series of canny bets during the company’s early history, then bet big on the Chinese retailer Alibaba, netting immense returns. But in recent years, the company is probably best known for Son’s dogged financial support of WeWork, the would-be coworking space startup with an Altman-like charismatic founder named Adam Neuman — and which imploded in spectacular fashion in 2019.
The question essentially comes down to a Rorschach test: is Altman a visionary ushering in a new world order, or is he a con man taking Son — and many other financial luminaries around the world — for a wild ride that’ll soon come crashing back to reality?
No matter how remote the chances, the consequences of the latter scenario could be catastrophic. SoftBank has already sold top assets, including shares in fellow AI company Nvidia, to pay for its OpenAI commitment. And insiders are reportedly jittery about signs that OpenAI is losing ground, with its defectors who jumped ship and started Anthropic now attracting the most buzz in the industry.
For their part, both companies downplayed Bloomberg‘s…
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