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flag OpenAI, valued at $500B despite losses and no profit until 2029, faces rising competition and scrutiny over unsustainable spending.

flag OpenAI, valued at $500 billion despite projected losses of several billion dollars in 2025 and no profitability expected before 2029, faces intensifying scrutiny as rivals like Google, Microsoft, Amazon, and Meta close the AI innovation gap. flag While the company continues to attract major investments, including a Disney licensing deal and ongoing support from Microsoft, critics including investor Michael Burry and AI researcher Gary Marcus compare its trajectory to Netscape’s decline, citing unsustainable spending—over $1.4 trillion on chips and data centers—and growing competitive pressure. flag Despite internal warnings of economic turbulence and a recent “red alert” following Google’s AI advances, OpenAI maintains over 800 million weekly users and remains a top industry player, with analysts divided on whether its dominance will endure or if the AI market will support multiple leading firms.

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