Overview
- Over the weekend, the Big Short investor wrote that OpenAI is the next Netscape, calling it “doomed and hemorrhaging cash.”
- He alleged Microsoft is keeping OpenAI afloat off balance sheet while extracting its intellectual property, adding that the industry wants a $500 billion IPO and that $60 billion would not be enough.
- He highlighted competitive strain as reports say Google’s Gemini 3 is outperforming on key benchmarks and the Wall Street Journal reported Sam Altman labeled the situation a “code red,” with OpenAI refocusing teams.
- CNBC reporting cited by coverage says OpenAI is tracking toward roughly $20 billion in annual recurring revenue even as it racks up about $9 billion in losses with a high cash burn rate.
- He also likened Palantir to dot-com consultant DiamondCluster and, as context, earlier 13F filings showed large put-option positions on Nvidia and Palantir, after which he deregistered his fund and shifted to public commentary.