OpenAI's AGI Nightmare: A $500 Billion Gamble and the Looming AI Bubble

OpenAI's ambitious "Project Stargate," a $500 billion initiative to build AGI, faces a major threat from DeepSeek R1, an open-source model from a Chinese hedge fund. DeepSeek R1 matches OpenAI's flagship model's performance at a fraction of the cost, raising concerns about an AI bubble. Massive investments are pouring into AI, yet OpenAI is hemorrhaging money, relying on a technological lead that DeepSeek R1 has effectively erased. Over-investment, dependence on expensive GPUs and energy, and questionable productivity gains from AI tools all increase the risk of a bubble burst, potentially causing a significant economic shock.