frontpage.
newsnewestaskshowjobs

Made with ♥ by @iamnishanth

Open Source @Github

fp.

Open in hackernews

Why Sam Altman Won't Be on the Hook for OpenAI's Spending Spree

https://www.forbes.com/sites/rashishrivastava/2025/11/07/why-sam-altman-wont-be-on-the-hook-for-openais-massive-spending-spree/
52•rramadass•1h ago

Comments

web3-is-a-scam•50m ago
> At an event this week, OpenAI CFO Sarah Friar seemed to suggest that the government could act as a “backstop” for the company’s commitments

She said the quiet part out loud? This was always the play, it is obvious. Too big to fail. National security concerns. China/Russia veer scary. Blah blah blah.

Altman’s libertarian pontification is so obviously insincere it’s laughable.

Polizeiposaune•47m ago
And David Sacks immediately responded with "there will be no government bailout":

https://www.cnbc.com/2025/11/06/trump-ai-sacks-federal-bailo...

web3-is-a-scam•42m ago
Surely the government would never lie.
coliveira•22m ago
Yes, the whole play by OpenAI is to raise enormous amounts of money as quickly as possible from as many people and companies as they can. Their only real goal is to put themselves in a position as the "indispensable company" that is too big to fail and will bring every AI investment to its knees if not supported by the government.
dangus•47m ago
You don’t even have to read the article. There is no such thing as a CEO held accountable.

Just look at Elon’s insane pay package, approved in a landslide. The skulls of the average shareholder must echo like a cave.

And the rich accuse the poor of their poverty being their own fault, because they are just being irresponsible, making bad decisions, and spending unwisely. They should look in the mirror.

bigstrat2003•43m ago
Yeah, a CEO being "held accountable" looks like "we will pay you enormous sums of money to leave the company". Just once I would like to see the CEO of some big corp face actual consequences for running the company badly, but I'm not holding my breath.
the__alchemist•31m ago
Are you sure you can't think of any examples?
0_____0•28m ago
May I introduce you to the Enron scandal?

https://en.wikipedia.org/wiki/Jeffrey_Skilling

coliveira•26m ago
Investors in companies such as Tesla are adept of the greater fool theory. As long as somebody else will pay more for the useless shares, they'll continue to support the company.
riku_iki•23m ago
CEOs who fraud superrich totally go to jail.
dylan604•2m ago
but if you play your cards right, you can then get pardoned.
dvt•12m ago
> The skulls of the average shareholder must echo like a cave.

Given you calling these people stupid, I'd be shocked if you out-earned them over the past 15 years[1]. And if your counter-argument will be "that's a bad yardstick" then what yardstick shall we use? I own no TSLA stock, nor do I particularly like Musk, but this weird irrational hatred just doesn't seem to contribute anything other than reiterating the (oh so boring) liberal "Musk bad" zeitgeist talking points.

[1] https://www.macrotrends.net/stocks/charts/TSLA/tesla/roe

phelddagrif•6m ago
yes yes my favorite objective the measure of intelligence: earnings yield
wronglebowski•47m ago
At what point will the massive investments into AI show a respectable return? With the literal Trillion dollars OpenAI is constantly trying to raise what type of revenue would make that type of investment make sense? Even if you're incredibly bullish I don't know how you make that math work anymore.
rossdavidh•31m ago
As others have said before me: "the hype IS the product".
shiandow•24m ago
That's just a roundabout way of saying they don't expect their money back they just hope to sell before the bubble bursts.
IAmGraydon•5m ago
Which is the same thing as a scam.
coliveira•27m ago
It's gonna be very fun to watch SA being tried for fraud and deceiving investors about the "future profits" of his startup.
cmrdporcupine•9m ago
Au contraire him and associated people (Musk, among others) will be or are being received as heroes in his class for helping to seemingly break the bargaining power of software engineers and middle/upper-middle class information workers and creatives generally.
lesuorac•8m ago
What fraud?

You should view your contributions as a donation. What donation has a ROI?

cmrdporcupine•12m ago
I think the market & political/economic actors as a whole are justifying these investments on the basis that the benefit is distributed across the labour market generally.

That is, it doesn't matter so much if OpenAI and individual investors get fleeced, if there's a 20-50% labour cost reduction generally for capitalism as a whole (especially cost reduction in our own tech professions, which have been very well paid for a generation) -- Institutional investors and political actors will benefit regardless, by increasing the productivity or rate of exploitation of intellectual / information workers.

jt2190•11m ago
I think it’s hard for individuals to think at the scale of very large institutional investors. They have lakes of money [1][2] that they have to invest in a balanced way, including investing a small percentage into “it probably won’t work but if it does we’ll make a fortune”-type bets. Given the size of these funds even a small percentage is a very large number.

There are also a finite number of opportunities to invest in, so companies that have “buzz” can create a bidding war among potential investors that drives up valuations.

So that’s one possible reason but in the end we can’t know why another investor invests the way they do. We assume that the investor in making a rational decision based on their portfolio. It’s fun to speculate about though, which is why there’s so much press attention.

[1] https://en.wikipedia.org/wiki/List_of_largest_pension_scheme...

[2] https://en.wikipedia.org/wiki/List_of_sovereign_wealth_funds...

BolexNOLA•7m ago
The problem is we now have municipal and state governments taking on infrastructural investments (usually via subsidies) and energy companies racing to meet the load demands. There are all kinds of institutions both private and public dumping obscene amounts money into this speculative investment that can’t be a winner for everybody.

What happens to the ones that built for projects that end up failing? Seems to me the only way the story ends is with taxpayers on the hook once again.

rramadass•7m ago
Why Fears of a Trillion-Dollar AI Bubble Are Growing - https://www.bloomberg.com/news/articles/2025-10-04/why-ai-bu...

What Would an AI Crash Look Like? - https://www.bloomberg.com/news/newsletters/2025-10-12/what-h...

lhoss•30m ago
https://archive.ph/LYVMZ
neilv•24m ago
The article unleashes a burst of expert quotes:

> Experts note chief dealmaker Altman doesn’t have anything to lose. He has repeatedly claimed he does not have a stake in the company, and won’t have a stake even after OpenAI has restructured to become a public benefit corporation. “He has the upside, in a sense, in terms of influence, if it all succeeds,” said Ofer Eldar, a corporate governance professor at the UC Berkeley School of Law. “He's taking all this commitment knowing that he's not going to actually face any consequences because he doesn't have a financial stake.”

> That’s not good corporate governance, according to Jo-Ellen Pozner, a professor of management and entrepreneurship at Santa Clara University’s Leavey School of Business. “We allow leaders that we see as being super pioneering to behave idiosyncratically, and when things move in the opposite direction and somebody has to pay, it's unclear that they're the ones that are going to have to pay,” she said.

> Luria adds: “He can commit to as much as he wants. He can commit to a trillion dollars, ten trillion, a hundred trillion dollars. It doesn't matter. Either he uses it, he renegotiates it, or he walks away.” There are of course more indirect stakes for Altman, experts said, like the reputational blow he’d take if the deals fall apart. But on paper, he’d seemingly be off the hook, they said.

Is an intended takehome message of the article that Altman should invest his own money (with potential loss, or profit), or that he should be given a big compensation deal (maybe like the one Musk just got)?

chemotaxis•11m ago
I've heard it over and over again that the ultimate problem with corporate governance is that the CEOs and the VPs are incentivized to make the stock up at any cost to pad their own coffers. This is basically taken as gospel in many circles.

Now you have a company where the leader at least notionally doesn't have that kind of a financial stake... and we think that's bad? I disagree with Altman on almost everything, but it feels like grasping at straws.

layer8•16m ago
> “The intelligence of an AI model roughly equals the log of the resources used to train and run it,” [Sam Altman]

Taking that at face value, it means we would have to invest exponential resources just to get linear improvements. That’s not exactly an optimistic outlook.

noir_lord•9m ago
"A deep incisive point, it seems like you want to turn the entire mass of the solar system into computronium to run ChatGPT27".
sph•6m ago
Grey goo scenario, but the goo are NVIDIA cards used to train LLMs.
random9749832•7m ago
Just a reminder that the brain uses ~20 watts.
djoldman•7m ago
Without knowing the details of these "agreements," everyone is just speculating.

OpenAI as an entity is only in trouble if they've bound themselves completely without any way out.

These "commitments" may just function as memorandums of understanding.

baron816•3m ago
I think sama thinks money won’t really exist within the next few years. ASI will take over and create a world of radical abundance. Any revenue OpenAI generates is just to create leverage.

Cloudflare Scrubs Aisuru Botnet from Top Domains List

https://krebsonsecurity.com/2025/11/cloudflare-scrubs-aisuru-botnet-from-top-domains-list/
1•jtbayly•35s ago•0 comments

We built a vector search engine that lets you choose precision at query time

https://clickhouse.com/blog/qbit-vector-search
1•ashvardanian•1m ago•0 comments

It's mainframes all the way down

https://medium.com/supplyframe-hardware/its-mainframes-all-the-way-down-73de55d2884b
1•rbanffy•4m ago•0 comments

Tidally Torn: Why the Most Common Stars May Lack Large, Habitable-Zone Moons

https://arxiv.org/abs/2511.03625
2•bikenaga•7m ago•0 comments

Ask HN: EnvSecOps == Attestation-Based Identity does this direction make sense?

1•_superposition_•9m ago•0 comments

3D Flight Tracker

https://googlemapsmania.blogspot.com/2025/11/the-3d-flight-tracker.html
2•benlimner•9m ago•0 comments

CRISPR gene-editing works to reduce high cholesterol in a new study

https://www.npr.org/2025/11/08/nx-s1-5587748/crispr-gene-editing-cholesterol-heart-disease
1•rbanffy•11m ago•0 comments

Former Capitol Police officer a forensic match for Jan. 6 pipe bomber

https://www.theblaze.com/news/former-capitol-police-officer-a-forensic-match-for-jan-6-pipe-bombe...
4•ca98am79•13m ago•0 comments

The NYC Transportation Crew Helping Preserve Its Cobblestone Streets

https://www.nytimes.com/2025/11/08/nyregion/nyc-cobblestone-streets.html
1•leephillips•13m ago•0 comments

52 Year old data tape could contain Unix history

https://www.theregister.com/2025/11/07/unix_fourth_edition_tape_rediscovered/
2•rbanffy•14m ago•0 comments

What Is Pwn?

https://pwnforfunandprofit.substack.com/p/what-is-pwn
1•andwati•14m ago•0 comments

Real-Time AI Model Performance Monitoring

https://aistupidlevel.info/
1•cactusplant7374•15m ago•0 comments

What happens when brainrot meets clicker games?

https://brainrot-clicker.app/
2•ursaiceice•17m ago•2 comments

2025 Meditation App Landscape: Comprehensive Review of Top Mindfulness Platforms

1•951560368•17m ago•0 comments

Shader Glass

https://github.com/mausimus/ShaderGlass
1•erickhill•18m ago•0 comments

The Case for Boring APIs

https://metorial.com/blog/boring-apis
1•tobihrbr•22m ago•0 comments

The Curse of Dimensionality and GIS

1•pjhooker•26m ago•0 comments

Weasel War Dance

https://en.wikipedia.org/wiki/Weasel_war_dance
1•jablongo•31m ago•0 comments

A Scientific Comparison with Meditation App

1•951560368•31m ago•0 comments

Improving Rust Compile Times by 71%

https://elijahpotter.dev/articles/improving-rust-compile-times-by-71-percent
1•chilipepperhott•31m ago•0 comments

New-hire air traffic controllers must be under age of 31

https://www.faa.gov/air-traffic-controller-qualifications
5•neko_ranger•39m ago•2 comments

Authorities Shut Down Film Festival in New York

https://www.hrw.org/news/2025/11/07/china-authorities-shut-down-film-festival-in-new-york
3•ilamont•43m ago•0 comments

Some Mercedes EVs Now Have a $50k Discount

https://www.carsdirect.com/deals-articles/mercedes-evs-now-have-a-50-000-discount
1•bookofjoe•43m ago•0 comments

UK lawyer buys large numbers of freeholds, sends 'aggressive' payment demands

https://www.sheffieldtribune.co.uk/a-london-lawyer-bought-hundreds-of-sheffield-freeholds-then-th...
2•mrchumphatty•44m ago•0 comments

Ancient earth: a visualization of continental drift. (WebGL)

https://dinosaurpictures.org/ancient-earth
3•fanf2•44m ago•0 comments

Clerk vs. Auth0 vs. Keycloak vs. FusionAuth

https://www.justaftermidnight247.com/insights/clerk-vs-auth0-vs-keycloak-vs-fusionauth/
1•mooreds•44m ago•0 comments

The accidental click that changed everything: the Apify origin story

https://blog.apify.com/apify-origin-story/
1•mooreds•46m ago•0 comments

Ask HN: Is Gemini biased towards Go when asked to pick a programming language?

1•danielfalbo•46m ago•1 comments

Multiprocess Support on Unikraft

https://unikraft.org/blog/2025-05-15-multiprocess
2•mooreds•47m ago•0 comments

Learning the History of Pho

https://www.ace.aaa.com/publications/food-and-drink/history-of-pho.html
1•vinhnx•47m ago•1 comments