What Happens If OpenAI Dies?

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To subscribe, use one of the following links: $70 a year, $18 a quarter, or $7 a month.If you want to get in touch — and especially if you have any juicy information about Anthropic, OpenAI, or any other companies in the AI bubble — hit me up on Signal at ezitron.76. I’m also on IB on The Terminal. I’m not trying to be a buzzkill here, but I have meaningful concerns about OpenAI’s ability to survive, and they’ve only grown more pressing in the last few years. In the same week that it completed a $7 billion internal share buyback, OpenAI saw both COO (and former CFO) Brad Lightcap and Chief Revenue Officer (CRO) Denise Dresser leave the company, the latter of which had only been there eight months, and had this to say a mere four months ago: “I just have never seen this level of conviction spread so quickly and consistently within the industries,” Dresser told CNBC in April, as she was wrapping up her first 90 days on the job. Dresser likely walked away from a large amount of stock options by leaving after less than a year on the job, which I’m guessing means she decided that staying at OpenAI would, for whatever reason, not be worth getting what I imagine are tens of millions of dollars of stock she would be able to liquidate when it went public. You know, that thing that’s definitely happening. Unless it’s not quite so definite anymore. Back in late June, The New York Times reported OpenAI was “leaning toward” going public some time in 2027, but that was before Anthropic started one of the most-aggressive pre-IPO marketing campaigns I’ve ever seen, with investors “leaking” to the Financial Times that they thought it would have a $2 trillion valuation and have (sigh) annualized revenues of $100 billion to $120 billion by end of 2026, an entirely fictional statement made with the intent of pumping their bags, with the FT, for whatever reason, printing it with little pushback.Yet what’s likely far-scarier for OpenAI is that even Anthropic’s pre-IPO marketing has a whiff of desperation. A Reuters report from late last week that feels precision-engineered to manipulate dimwitted investors said that “Wall Street [was] looking further into the future than it commonly does to put a price on the AI company, valuing it based on how much revenue it could generate two years from now,” adding that it was “projecting revenue of roughly $190 billion to $200 billion.” This was arguably the worst part:Established companies are typically valued more heavily on earnings, or EBITDA, which gives investors a sense of the economics of the business.For Anthropic, however, current EBITDA does not fully capture the economics investors expect the company to achieve at scale. Anthropic is spending enormous amounts on GPUs and other computing capacity, model training, inference and hiring. Those expenses are necessary to support its rapid expansion but could become a smaller percentage of revenue as the business grows.While I imagine the writer in question believed that this was being “fair” and “objective,” this paragraph exists only to manufacture consent for a company that clearly has questionable economics. “Current EBITDA does not fully capture the economics investors expect the company to achieve at scale” is a euphemism for “ignore your lying eyes,” a plea with the audience to not judge a company based on its actual business but on a theoretical business that, to quote Reuters, have “...training and inference [costs] become more efficient as technology improves, while personnel and other operating costs could become a smaller share of revenue as the company scales.”Could, could, could, could, could, could could COULD! It’s always a bloody could or will or might with these fucking companies, and it’s astonishingly bad journalism to see it as an “objective” choice to vaguely say that a company should not be evaluated based on its actual business but on some theoretical business that they might build in the future where the economics are completely different. Sidenote: the defense of a statement like this is always that it’s “to show both sides,” but the article also fails to disclose that Anthropic loses billions of dollars a year, or that the AI labs are horribly unprofitable. It does, however, include that Anthropic had a “profitable quarter,” which is something that was only made possible with Musk’s discounts on its compute costs in May and June 2026. That fact is also left out of the article.The reason I bring up the noises coming from the manufacturing consent machine is that if Anthropic beats OpenAI to an IPO, I cannot see a viable (or reasonable) path for Sam Altman to float his nasty little company. The fact that the Financial Times and Reuters are already being co-opted into softening the blow is a sign that Anthropic’s S-1 will look and smell like the inside of a tauntaun, and Anthropic is, from the reporting I’ve read, in a much better condition than OpenAI, if only because it didn’t have multiple side quests involving video generation or browsers or smart speakers, though both companies love to give away $20 to $40 for $1. Put simply, if Anthropic goes public with its own horrifying economics on parade, it’s hard to imagine OpenAI — a company that lost $20.9 billion in 2025 on $13.07 billion in revenue — will fare much better. After all, Anthropic just hit, per Bloomberg, $65 billion in annualized run rate — a month multiplied by 12, or four weeks multiplied by 13, I’m guessing, because it never defines this number — in May 2026, and OpenAI is “on track” to hit $40 billion annualized revenue…in the middle of August. Another Sidenote: I gotta say, that Bloomberg story about Anthropic’s run rate is even weirder than usual, defining run rate as “a metric that projects full-year revenue from a shorter period” without actually saying how it’s derived. No need to ask difficult questions I guess!We are, of course, in the era of madness, so I’ve already read three or four people on Twitter say that OpenAI’s actual annualized revenue is so much higher, because they’ve heard stuff from people they trust. The AI industry’s loudest advocates think and act like cultists at the end of a doomsday prophecy, except instead of the world ending, OpenAI and Anthropic become the largest companies — or in the case of giga-oaf hedgie Gavin Baker, the only companies — in the world, rewarding all those who believed with…something. Glory? Smugness? Salvation? In any case, OpenAI has a real problem if Anthropic beats it to the markets. OpenAI’s Revenue Growth Decelerated At Exactly The Time It Needed To AccelerateOn October 31, 2025, a flustered Sam Altman told booster and investor Brad Gertsner that OpenAI would make “well more than $13 billion” in revenue that year before saying he’d “find a buyer for his shares.” In the end, per my own reporting, “well more” would mean “$70 million,” with OpenAI making $13.07 billion in revenue in 2025, with SoftBank accounting for $862 million. A week later on November 6, CNBC would report that OpenAI was “on track” to generate “more than” $20 billion in annualized revenue. OpenAI works out its annualized revenue by multiplying its most-recent four-week-long period by 12, which means that in a four-week-long period it had $1.66 billion in revenue, I guess? On March 4, 2026, The Information would report that OpenAI had “topped” $25 billion in annualized revenue after hitting $21.4 billion at the end of 2025, and included the following hilarious line:OpenAI calculates annualized revenue by multiplying the last four weeks’ revenue by 12. If OpenAI calculated the metric based on revenue spikes just in the last week, OpenAI’s annualized revenue would be roughly $30 billion, one of the people said.Yeah man, this is why using annualized revenue is such a stupid idea. If you have a particularly-busy four-week-long period — like a product launch with a big social media push — you can use that period to inflate your revenues, which is exactly what OpenAI is doing, as evidenced by the sources (who I assume work at OpenAI) saying that’s exactly what they’re doing.Annualized revenues are not a useful way of measuring these companies’ financial condition, and exist only as a form of marketing, made worse by the fact that AI token spend is not a recurring source of revenue. While you could theoretically use annualized revenue as a directional bit of data if it was just two companies selling (subsidized) subscriptions, the ability for these companies to cherry-pick periods of time that might be inflated by aberrations (like when someone spent $500 million on Claude tokens by accident) makes these numbers somewhere between useless and actively harmful to investors.Even then, it took OpenAI seven months to be “on track” to reach an annualized revenue run rate ($40 billion) that was seven billion dollars smaller than Anthropic’s ($47 billion) from May, and a full $25 billion in run rate less than what it hit at the end of July. Perhaps it’s a coincidence, but it’s also worth noting that the news about OpenAI’s exciting new annualized revenue “leaked” mere hours after the abrupt resignation of its Chief Revenue Officer. The reason that OpenAI (and Anthropic, for that