China's DeepSeek threatens OpenAI: Nobel confirms the superiority of open-source models in developing markets

China's DeepSeek threatens OpenAI: Nobel confirms the superiority of open-source models in developing markets

OpenAI on the Brink of Financial Collapse  George Noble, founder of the renowned hedge fund and manager of Fidelity Overseas, has warned that OpenAI is nearing complete collapse due to its enormous operating costs and intensifying competition, particularly from Chinese open-source models like DeepSeek. In a post on the X platform, Noble asserted that the company needs to generate over $143 billion in revenue before becoming profitable, a goal that seems unattainable in the coming years, making an initial public offering (IPO) a move that could accelerate the crisis rather than resolve it. Massive Financial Losses: $12 Billion in a Single Quarter Noble based his claims on data from Microsoft (which owns a significant stake in OpenAI), indicating that the company incurred losses of up to $12 billion in a single fiscal quarter. He also cited Deutsche Bank estimates showing cumulative negative cash flows of up to $143 billion before reaching the break-even point. Bank analysts described this…