Part 2/12:
Newman points out that the massive $76 billion loss projected over three years and the overall billion-dollar expenses associated with OpenAI are indicative of a broader industry phenomenon: the AI bubble. Despite heavy losses, investors remain confident because the long-term potential of AI infrastructure and the appetite for AI services appear insatiable. Backers believe that companies like OpenAI are destined to evolve into colossal hyperscalers, with hopes of eventually monetizing these massive models, even if immediate profitability remains elusive. The belief in a long-term, trillion-dollar IPO for AI infrastructure fuels investor patience, illustrating the high-stakes gamble on AI's transformative power.