A veteran investor tears into OpenAI 'chaos,' and says the market's smart money is pouring into small-cap stocks (www.businessinsider.com)

Hedge fund founder George Noble has issued a stark warning regarding "chaos" at OpenAI, suggesting that the company could serve as a cautionary tale within the AI hype cycle. Noble believes the ambitious projections set by OpenAI, including a target of $200 billion in annual revenue by 2030, are unrealistic. He argues that future advancements in AI will require exponentially more resources—five times the energy and investment for only double the improvement—indicating that the era of easy gains in AI development may be over. This sentiment is underscored by CEO Sam Altman's "code red" statement from December 2025, which raises questions about the company's financial sustainability. In light of these concerns, Noble advises investors to pivot away from OpenAI-linked stocks and consider small to mid-cap stocks instead, which he perceives as undervalued amid a market that's currently overly focused on major tech players. He suggests that the smart money is shifting towards sectors where valuations reflect fundamental growth rather than speculative hype. As the AI boom appears to be peaking, Noble underscores the importance of recognizing potential risks and limitations in the AI sector—warning that chaos within OpenAI could negatively affect broader market sentiment towards AI investments.