Morning Brew Daily Is OpenAI Too Big to Fail? & Shutdown Takes Step Towards End
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Nov 10, 2025 Toby and Kyle dive into the controversial idea of OpenAI potentially being 'too big to fail' amidst discussions of government backstops. They also explore President Trump's proposal for 50-year mortgages, weighing its affordability against long-term costs. Netflix's reimagining of 'Sesame Street' is on the table, aiming to reconnect with audiences. Additionally, the frenzy over Starbucks’ bear-shaped cup sparks both excitement and backlash. They round out the conversation with insights on looming economic data delays due to the government shutdown.
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AI Interconnectedness Creates Systemic Risk
- OpenAI's scale and circular deals create systemic risk across AI infrastructure providers.
- Interconnected contracts could make AI a 'too big to fail' sector despite firms not yet profitable.
CFO's Slip Sparked Bailout Debate
- Sarah Fryer's comment about a federal backstop provoked public concern and company damage control.
- Sam Altman publicly rejected the idea, saying "if we screw up and can't fix it, we should fail."
Scale vs. Profit Raises Funding Questions
- OpenAI's user reach and valuation outpace current revenues and heavy losses.
- The mismatch between scale and profit fuels skepticism about funding a $1.4 trillion spending plan.
