Is OpenAI Becoming Too Big, and too interconnected, to Fail?

Few worried about what would happen if Pets.com failed in the dot-com boom.

We saw in 2008-09 with the bank rescues and the Chrysler and General Motors bailouts what happens in the U.S. when certain companies become too big to fail.

The lessons of the financial crisis earlier this century weren’t just that the banks were too big to fail, they were too interconnected to fail.

Nvidia and Oracle, are partnering with OpenAI, which in turn is committing to make big purchases in coming years as part of its growth ambitions.

Supporters would argue it is just savvy dealmaking. A company like Nvidia, for example, is putting money into a market-making startup while OpenAI is using the lofty value of its private equity to acquire physical assets.

Tim Higgins WSJ Nov. 2, 2025 

https://www.wsj.com/tech/ai/is-openai-becoming-too-big-to-fail-400bac2c


What if OpenAI went belly-up? What Would an AI Crash Look Like? 

Bubbles are hard to identify and even harder to time, but they aren’t hard to explain. 

A new technology or some other catalyst raises investors’ expectations, prices rise, and speculators pile in believing that they can resell the asset to someone else for even more money later. 

https://englundmacro.blogspot.com/2025/10/what-if-openai-went-belly-up-what-would.html





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