Microsoft Should Not Acquire OpenAI
What will it mean for NVDA when OpenAI can no longer raise capital?
I have heard people float the idea that Microsoft (MSFT) should acquire OpenAI. Why? The time for MSFT to acquire OpenAI was long ago. OpenAI is way too richly valued for such a deal to work. If MSFT were to acquire OpenAI, Satya Nadella would be thrown out by the Board within 24 months. Microsoft acquiring OpenAI would not change OpenAI’s unit economics in terms of the cost to build a model. It would not enhance OpenAI’s AI research effort.
OpenAI will keep buying chips from NVIDIA (NVDA) and Google (GOOGL) until it can no longer raise money at outlandish valuations. Then, game over. Then maybe Google will acquire some assets around OpenAI’s UI. But at the model level, OpenAI’s got nothing to offer.
Anthropic actually has something. Anthropic is doing something different at it relates to automating the software coding function.
Google owns everything else. Try throwing a long YouTube video into Gemini and ask Gemini to analyze and summarize the video. It’s impressive. Ditto for nano banana.
When OpenAI inevitably slows its spend and eventually goes out of business, NVIDIA (NVDA) will be the big loser. What a mighty fall it will be for NVDA shares.