American billionaire has a ‘message’ for Sam Altman: Wasting a lot of money

Mark Cuban.

American billionaire and former Shark Tank investor Mark Cuban has now taken aim to ChatGPT-maker OpenAI’s business strategy, warning CEO Sam Altman that the company is ‘throwing ways money at scale.’ According to a report Benzinga, speaking on the Big Technology Podcast, Cuban expressed his skepticism about the sustainability of OpenAI’s massive spending on data centers and infrastructure. Curban has also argued that computing power is advancing so quickly and also becoming faster and cheaper that today’s eye-catching investment projections are unlikely to materialize. “The numbers thrown out there aren’t going to come to fruition. It’s not going to happen,” he said. He compared OpenAI’s approach to Apple, noting that Apple spent “next to nothing” yet built a foundation where developers could simply “plug and play” into its devices.

Mark Cuban questioned large AI models over profitability

OpenAI is valued at $852 billion and the company is reportedly preparing for a public listing, has failed to meet its revenue and new-user targets. The company missed its goal of one billion weekly ChatGPT users and annual revenue expectations, largely due to competition from Google’s Gemini. Cuban has also questioned whether large AI models like ChatGPT or Gemini will ever be profitable, suggesting the industry could mirror streaming with a few winners and many struggling or consolidate into one dominant player.

Internal tensions at OpenAI

Reports also suggest that OpenAI executive are prioritising cost control and disciple, sometimes clashing with Altman’s vision. CFO Sarah Friar has raised concerns about whether the company can afford future computing contracts if revenue growth stalls. High subscriber churn has added to the pressure, raising doubts about whether OpenAI can sustain its heavy infrastructure spending.

Mark Cuban’s advice to his daughter

Mark Cuban recently shared a ‘critical’ piece of advice that he once gave to his daughter. During an appearance at Big Technology Podcast, Cuban said that if he was graduating right now, “or if I was a 16-year-old looking for a job, I would learn everything there is to know about AI”. Answering the question “Who succeeds with AI,” Cuban replied saying “Whoever learns how to use the (AI) tools the best”. “It's like I was telling my daughter, if you learn how to use these tools, and you know how to think critically, you're curious, so you're always learning, you're always going to have a job because AI doesn't know the consequences of its action,” he said. He further stated that one must not be in a business where “you just trust the AI and it's like”, adding “Oh what did it do”. “You need somebody as the buffer to understand how, where, when, and why to or why not to use it. And that's critical. And that's middle management in a lot of cases,” he stated.

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