OpenAI goes from stock market savior to burden as AI risks mount

Michael Burry, known for his critical views on major tech stocks, has intensified his scrutiny of OpenAI and Palantir, sharing pointed observations on social media that reflect his negative sentiment towards these companies. His latest commentary highlights concerns about their market positions and future prospects amid rising competition and operational challenges.

Concerns are mounting over the artificial intelligence (AI) sector, with fears that it may be a bubble poised to burst. Blake Montgomery, the US tech editor for The Guardian, highlights that major companies like Alphabet, Amazon, and Nvidia, which collectively represent a significant portion of the S&P 500, are heavily invested in AI, raising questions about the sustainability of such investments.

OpenAI's stock market performance has shifted from being a beacon of hope to a source of concern, as Wall Street sentiment turns negative amid rising risks associated with the company, while Alphabet Inc. sees a contrasting rise in investor confidence.

Waymo, the autonomous ride-hailing service owned by Alphabet, is recalling its self-driving vehicles following reports of them driving past stopped school buses in Austin, raising significant safety concerns. This decision comes after public pressure and scrutiny from the Austin Independent School District, which highlighted the issue through videos.

AI labs including Meta, Deepseek, and Xai received poor ratings on an existential safety index, with Anthropic, OpenAI, and Google DeepMind achieving grades of C+ or C. This assessment highlights significant concerns regarding the safety protocols and ethical considerations of these companies in the rapidly evolving AI landscape.

SpaceX, founded by Elon Musk, is reportedly discussing a record valuation that could exceed $800 billion, with plans for an initial public offering (IPO) as early as 2026. This valuation would surpass OpenAI's previous record of $500 billion, indicating significant investor confidence in SpaceX's future prospects.

SpaceX, the rocket manufacturing company founded by Elon Musk, is aiming for an $800 billion valuation in its latest share sale, which would position it as the most valuable start-up, surpassing OpenAI. This move reflects the company's ongoing growth and ambition in the competitive aerospace sector.