OpenAI is crashing For decades, I have witnessed countless companies collapsing. OpenAI exudes a dangerous aura everywhere. OpenAI issued a 'red alert' in December. Altman sent an internal memo to employees, urging them to put aside all their current work as Google's Gemini 3 is seizing the market. Salesforce CEO Marc Benioff publicly announced that he would abandon ChatGPT and switch to Gemini after using it for two hours. The traffic of ChatGPT decreased in November, marking the second month on month decline since 2025. At the same time, Gemini's monthly active users jumped to 650 million. This company, which was supposed to build general artificial intelligence, is unable to maintain its competitiveness as a chatbot. But the real story is about money According to Microsoft's own financial data, OpenAI lost $12 billion in one quarter. Deutsche Bank estimates that the company's cumulative negative cash flow will reach $143 billion before achieving profitability. Their analyst bluntly said, "No startup company in history has suffered such massive losses They burn 15 million dollars a day just on Sora. Spending $5 billion annually on creating copyrighted emojis. Even Sora's chief engineer admits that the current economic situation is completely unsustainable. This is a major mathematical problem that no one wants to discuss: To improve the performance of these models by 2 times, it would require 5 times the energy and money. The easily obtainable achievements have been harvested. Nowadays, any small improvement requires exponentially increasing computing power, more data centers, and more powerful electricity. There are reports that OpenAI's large-scale training in 2025 failed to produce better models than previous versions. The release of GPT-5 has greatly disappointed users. Users have expressed that it is "disappointing" or even "terrible". Due to users' preference for older models, OpenAI had to restore the release of GPT-40 within 24 hours. Ultraman once promised that GPT-5 would make GPT-4 feel "slightly embarrassed". However, users complain that it performs worse in basic mathematics and geography. Afterwards, they released GPT-5.1 and GPT-5.2. Every time it's the same complaint: too bureaucratic, too safe, too mechanical, too boring. Talent loss exacerbates the situation: Chief Technology Officer Mira Murati. Resigned. Chief Research Officer Bob McGraw. Resigned. Chief scientist Ilya Sutzkeville has passed away. President Greg Brockmann. Resignation. Half of the members of the artificial intelligence security team have resigned. According to reports, several executives have accused themselves of "psychological abuse" under the leadership of Ultraman. Now, Elon Musk has filed a lawsuit seeking compensation of up to $134 billion. A federal judge has just ruled that this case will be tried by a jury in April. There is ample evidence to suggest that OpenAI's leadership has promised to maintain the non-profit organization structure funded by Musk. Based on these guarantees, Musk provided $38 million in funding early on. Now, he wants a share of the $500 billion valuation. OpenAI called it 'harassment', but the judge disagreed. I think the following things will happen next: The hype cycle of artificial intelligence is approaching its peak. The trend of diminishing returns can no longer be concealed. Competitors are catching up. The number of litigation cases is increasing. OpenAI needs to generate $200 billion in annual revenue by 2030 to justify its predictions. Within five years, it has increased 15 times, while the cost continues to soar. Even Sam Ultraman admits that investors are "too excited" about artificial intelligence. His original words were: "Someone will lose a lot of money If I were to run a thriving AI startup now, I would look for opportunities to exit. Sell it quickly while the heat hasn't subsided. My opinion: I won't touch OpenAI related stocks with such high valuations at present. The risk is simply too high. If you have come into contact with the "Big Seven" through investing in artificial intelligence infrastructure projects, you may consider reducing your holdings. The gap between the promised revolution and the ultimate reality has never been so great. Smart funds are shifting towards industries where valuations truly reflect fundamentals. The trading prices of small and medium-sized stocks are close to a decade low compared to large technology companies, while profit growth is only slightly lower. The market can price risk, but cannot price chaos. OpenAI is like chaos disguised as a $500 billion valuation.