Keep pulling the thread on Blue Owl Capital.
Blue Owl Capital has withdrawn from a $10 billion deal to finance a joint Oracle and OpenAI data center in Michigan.
The current generation of Large Language Models are facing a "scaling problem" where adding exponentially more compute power no longer yields proportional gains in intelligence.
The initial training of OpenAI's GPT-5, codenamed Project Orion, was completed by summer 2024 and was only marginally better than GPT-4, indicating a breakdown in scaling laws.
ChatGPT's market share reportedly fell from 86% in January 2025 to 65% in January 2026.
OpenAI is projected to incur a $14 billion loss in 2026, based on internal documents reportedly seen by The Information.
OpenAI's internal projections show the company expects to lose $44 billion before achieving its first profit of $14 billion in 2029.
OpenAI has committed to spending over $1 trillion on AI data center infrastructure over an eight-year period, while its current annual recurring revenue is $13 billion.
OpenAI has an agreement to pay Oracle $60 billion per year for cloud infrastructure, beginning in 2027.
OpenAI forecasts it will achieve $100 billion in annual revenue by 2029.
OpenAI is predicted to begin testing advertisements in its free tier and a new $8 per month tier of ChatGPT on January 16, 2026.
OpenAI's decision to introduce ads is viewed as a "last resort" for its business model, a characterization previously used by CEO Sam Altman in October 2024.
OpenAI's Sora application is reportedly losing $15 million per day.