On today’s episode, Mike Adams delivers a critical financial analysis of the current artificial intelligence market, focusing on the business model of OpenAI. He argues that OpenAI is a deeply unprofitable company, projecting losses of tens of billions of dollars annually through 2028, and relies on massive, risky loans to fund its operations. Adams details a $40 billion loan from SoftBank, which he characterizes as an unsecured, high-risk bridge loan that matures in just 12 months, and notes that SoftBank had to sell significant assets to finance the deal. He draws a direct comparison between this situation and the subprime mortgage crisis of 2008, suggesting that the financial industry is again exposed to “shitty debt” based on unrealistic promises.
Adams’s central argument is that OpenAI lacks a unique competitive advantage to justify its valuation, unlike Amazon’s logistical infrastructure during its early unprofitable years. He asserts that competing models from China, such as DeepSeek, offer comparable or superior performance at a fraction of the cost, and that Chinese scientists are producing the most significant AI research papers. Adams further contends that OpenAI cannot scale its promised data centers due to physical supply chain limitations, including shortages of transformers, gas turbines, and critical materials like helium, especially given ongoing global conflicts. He concludes that the entire AI hype cycle resembles the dot-com bubble, predicting a major financial collapse that will devastate investors, and advises against investing in these tech stocks in favor of tangible assets like gold and silver.
For more updates, visit Naturalnews.com
