Looks like there are some changes taking place over on Silicon Valley. All these years we've known OpenAI and Microsoft have been together through thick and thin and that they would remain so for the foreseeable future. But if you look closely, see what they're doing, things will be gradually clarified to you that this till death do us apart, thing isn't working out. I actually saw some of these things before but I never really gave it enough thought. But after watching the news over the weekend, I am confirmed that a breakup is in session.
The news I just said is that OpenAI is striking a deal with Oracle for data storage and solutions. Now that deal itself is bonkers I might get to that. But the elephant in the room is that OpenAI opted for Oracle instead of Microsoft's very own azure cloud services. So Microsoft was their Angel investor and they didn't take their product. Instead, they went out and struck a deal with a supposed rival company. And about the signs, I told you that I saw earlier but didn't take it seriously, those were Microsoft implementing different AI models other than OpenAI’s GPT models. So I think these two companies are decoupling. And about that bonkers deal, that deal is worth around $400 billion. That is a lot of money. That is way more than all these big acquisitions we've been seeing over the past few years. Now. I don't know why Microsoft and openai are decoupling but I do know that this $400 billion deal can go south very easily. Just like the.com bubble just like the housing bubble. And I personally believe that AI is definitely a bubble. And these bubbles will burst one day or the other. And those $400 billion. They certainly won't be paid overnight. So obviously if the bubble bursts before these 400 billion are paid and accounted for. I guess both OpenAI and Oracle will be in for a ride. Because when the bubble bursts it'll take the economy with it.
I'm not a business man nor an economist. I merely take interest in these topics as they do intrigue me and I find this as a hobby. But the nature of this deal between OpenAI and Oracle is beyond me. I'm sure there is something somewhere in those paperwork that will save both parties from a potential bubble event and I would also like to uncover why Microsoft and OpenAI decided to break up after years of “healthy marriage”.
