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OpenAI is raising money at a pace Silicon Valley has rarely seen before, but billionaire investor Mark Cuban is not convinced the economics will work and says the industry may never generate returns strong enough to justify the massive spending.<\/p>\n
Speaking on the “Big Technology” podcast<\/a> with Alex Kantrowitz last month, Cuban said massive AI infrastructure spending may not deliver the expected returns. He was blunt when asked about OpenAI’s huge funding rounds and whether the company would ever generate returns that justify it all.<\/p>\n “They\u2019ll never get it,” Cuban said. “They\u2019re just sh****g away that money. It\u2019s not that AI is not going to work; I think a lot of the numbers that they\u2019re throwing out there aren\u2019t going to come to fruition. I\u2019m not convinced that for all of them it\u2019s going to work.”<\/p>\n Don’t Miss:<\/p>\n The AI Marketing Platform Backed by Insiders from Google, Meta, and Amazon \u2014 Invest at $0.95\/Share<\/a><\/p>\n This Under-$1 Pre-IPO AI Company Is Still Open to Retail Investors \u2014 Learn More<\/a><\/p>\n OpenAI, led by Sam Altman, said<\/a> in March it raised $122 billion in a funding round at an $852 billion valuation, one of the largest private raises in tech history.<\/p>\n \u2018Deeper Trouble’ <\/p>\n Cuban said it’s still unclear whether the AI large language models industry turns into a winner-takes-all market dominated by a few players or a more crowded space where models become a commodity and competition slowly erodes differentiation.<\/p>\n LLM companies focusing on niches like finance, programming, and healthcare may struggle to build lasting moats because the underlying data can ultimately be accessed and trained on by multiple models, Cuban said. He thinks AI companies are now in a cycle where they must keep raising money and spending at scale or risk falling behind in a race with no clear winner.<\/p>\n Trending: Investors Are Racing to Back This Lithium Breakthrough \u2014 Don’t Miss the Next Big Energy Boom<\/a><\/p>\n “They need to kiss around the world in hopes of being the one,” Cuban told Kantrowitz. “You. can\u2019t keep on raising money because as it zigs and zags and you don\u2019t know where it\u2019s all going to go, if you\u2019re not still raising money, you\u2019re in deeper trouble because you don\u2019t know if you know if you\u2019re not the winner, then you\u2019ve got problems.”<\/p>\n Dario Out to \u2018Scare’ Everybody <\/p>\n Leading AI companies are fueling hype and fear around AI, overstating its risks and impact on jobs to raise capital, Cuban said. He pointed to Anthropic co-founder Dario Amodei, who warned<\/a> earlier this year that AI could displace half of all entry-level white-collar jobs in the next five years.<\/p>\n “Dario now is trying to scare the s**t out of everybody,” Cuban told Kantrowitz. “But that’s part of raising money. Like when we had Broadcast.com back in the day, I would say, \u2018We’re just going to replace cable and satellite and all that.'”<\/p>\n Read Next:\u00a0<\/p>\n Building Wealth Across More Than Just the Market <\/p>\n Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, professional financial guidance, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn’t tied to the fortunes of just one company or industry.<\/p>\n Rad AI<\/p>\n RAD Intel is an AI-driven marketing platform helping brands improve campaign performance by turning complex data into actionable insights for content, influencer strategy, and ROI optimization.<\/a> Positioned within the multi-hundred-billion-dollar digital marketing industry, the company works with global brands across sectors to improve targeting precision and creative performance using its analytics and AI tools. With strong revenue growth, expanding enterprise contracts, and a Nasdaq ticker reserved under $RADI, RAD Intel is opening access to its Regulation A+ offering, giving investors exposure to the growing intersection of AI, marketing, and creator economy infrastructure.<\/p>\n Immersed<\/p>\n Immersed is a spatial computing company building immersive productivity software that enables users to work across multiple virtual screens inside VR and mixed-reality environments.<\/a> Its platform is used by remote workers and enterprises to create virtual workspaces that reduce reliance on traditional physical hardware while improving focus and collaboration. The company is also developing its own lightweight VR headset and AI productivity tools, positioning itself in the future-of-work and spatial computing space. Through its pre-IPO offering, Immersed is opening access to early-stage investors looking to diversify beyond traditional assets and gain exposure to emerging technologies shaping how people work.<\/p>\n Connect Invest<\/p>\n Connect Invest is a real estate investment platform that allows investors to access short-term, fixed-income opportunities backed by a diversified portfolio of residential and commercial real estate loans.<\/a> Through its Short Notes structure, investors can choose defined terms (6, 12, or 24 months) and earn monthly interest payments while gaining exposure to real estate as an asset class. For investors focused on diversification, Connect Invest may serve as one component within a broader portfolio that also includes traditional equities, fixed income, and other alternative assets\u2014helping balance exposure across different risk and return profiles.<\/p>\n rHealth<\/p>\n rHealth is building a space-tested diagnostics platform designed to bring lab-quality blood testing closer to patients in minutes rather than weeks<\/a>. Originally validated in collaboration with NASA for use aboard the International Space Station, the technology is now being adapted for at-home and point-of-care settings to address widespread delays in diagnostic access.<\/p>\n Backed by institutions including NASA and the NIH, rHealth is targeting the large global diagnostics market with a multi-test platform and a model built around devices, consumables, and software. With FDA registration in progress, the company is positioning itself as a potential shift toward faster, more decentralized healthcare testing.<\/p>\n Arrived<\/p>\n Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100<\/a>. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.<\/p>\n Masterworks<\/p>\n Masterworks enables investors to diversify into blue-chip art, an alternative asset class with historically low correlation to stocks and bonds<\/a>. Through fractional ownership of museum-quality works by artists like Banksy, Basquiat, and Picasso, investors gain access without the high costs or complexities of owning art outright. With hundreds of offerings and strong historical exits on select works, Masterworks adds a scarce, globally traded asset to portfolios seeking long-term diversification.<\/p>\n Lightstone<\/p>\n Lightstone DIRECT gives accredited investors access to institutional-quality multifamily real estate opportunities backed by a vertically integrated operator with more than $12 billion in assets under management and a 40-year track record.<\/a> With more than 25,000 multifamily units nationwide \u2014 including significant exposure to low-supply Midwest markets where rent growth has remained resilient \u2014 Lightstone is positioning investors to benefit from tightening housing supply, strong occupancy trends, and long-term rental demand. Through Lightstone DIRECT, individuals can co-invest alongside the firm, which commits at least 20% to each deal, offering exposure to professionally managed multifamily assets designed to generate durable income and long-term appreciation beyond the traditional stock market.<\/p>\n AdviserMatch<\/p>\n AdviserMatch is a free online tool that helps individuals connect with financial advisors based on their goals, financial situation, and investment needs<\/a>. Instead of spending hours researching advisors on your own, the platform asks a few quick questions and matches you with professionals who can assist with areas like retirement planning, investment strategy, and overall financial guidance. Consultations are no-obligation, and services vary by advisor, giving investors a chance to explore whether professional advice could help improve their long-term financial plan.<\/p>\n Accredited Debt Relief<\/p>\n Accredited Debt Relief is a debt consolidation company focused on helping consumers reduce and manage unsecured debt through structured programs and personalized solutions<\/a>. Having supported more than 1 million clients and helped resolve over $3 billion in debt, the company operates within the growing consumer debt relief industry, where demand continues to rise alongside record household debt levels. Its process includes a quick qualification survey, personalized program matching, and ongoing support, with eligible clients potentially reducing monthly payments by 40% or more. With industry recognition, an A+ BBB rating, and multiple customer service awards, Accredited Debt Relief positions itself as a data-driven, client-focused option for individuals seeking a more manageable path toward becoming debt-free.<\/p>\n Image: Imagn<\/p>\n This article Numbers They’re ‘Throwing Out’ Won’t Come to ‘Fruition’: Mark Cuban Predicts Sam Altman’s OpenAI Will ‘Never’ Make Back Massive AI Spending<\/a> originally appeared on Benzinga.com<\/a><\/p>\n \u00a9 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.<\/p>\n","protected":false},"excerpt":{"rendered":"Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. 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