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Investing.com -- OpenAI Chief Financial Officer Sarah Friar pushed back against concerns of an artificial intelligence bubble, suggesting the market should show more "exuberance" about the technology’s potential benefits.
"I don’t think there’s enough exuberance about AI, when I think about the actual practical implications and what it can do for individuals," Friar said Wednesday during an onstage interview at the Wall Street Journal’s Tech Live conference in California. "We should keep running at it."
Her comments come as investor Michael Burry, known for predicting the 2008 housing market collapse, has taken significant bearish positions against AI-related companies. Burry’s hedge fund, Scion Asset Management, purchased over $1 billion in put options on tech companies Nvidia and Palantir, according to regulatory filings released Monday for the quarter ended September 30.
The AI sector has faced increasing scrutiny over high company valuations and massive spending on data centers and chips. OpenAI has committed more than $1.4 trillion to AI infrastructure despite remaining unprofitable.
Friar defended OpenAI’s financing arrangements with companies like Nvidia and AMD, which some critics have described as circular. Nvidia agreed to invest up to $100 billion in OpenAI for data center expansions, while OpenAI committed to purchasing millions of Nvidia chips.
"I kind of reject the premise completely," Friar said. "We’re all just building out full infrastructure today that allows more compute to come into the world. I don’t view it as circular at all. A huge body of work in the last year has been to diversify that supply chain."
Regarding a potential public offering, Friar stated clearly: "We’re not getting ready for an IPO. IPO is not on the cards right now."
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