A Mathematician Lurking in the TechUnderWorld

A Mathematician Lurking in the TechUnderWorld

OpenAI's Trap: The Cost of Moving Thoughts Is Ruining AI

GEO-AI moves the right thoughts to the right places. Flat AI burns billions and still misses

Jose Crespo PhD's avatar
Jose Crespo PhD
Jun 12, 2026
∙ Paid

Nvida and OpenAI are still playing a lost game

Nvidia and OpenAI have overextended their bets on old AI so badly that their only move left looks like a flight forward.

Yes, I know the obvious reaction… because anyone looking at their market value, their charts, and the ocean of money around them will think the same thing: This guy must be out of reality.

But that is exactly how bubbles speak before they crack.

The same market that inflated Nvidia’s value at insane speed can also punish it at insane speed once investors understand the forbidden sentence of this AI cycle: More computation does not mean AI stops hallucinating.

It means marginal improvements bought at exponential cost.

Scale Buys Less for More. Capability flattens against an irreducible floor while the cost to train a single frontier model climbs toward a billion dollars. None of it moves the hallucination floor. It holds near half across GPT-4o, o3, GPT-5, and even GPT-5.5. The new leader still bluffs a confident answer 86 percent of the time on the questions it gets wrong, because it is trained to commit. More compute is not the cure. Sources: scaling laws, compute and cost, hallucination floor, GPT-5.5 on AA-Omniscience.

By ignoring the writing on the wall, Nvidia doubles down on computation: more power, more heat, more money poured into flat-AI GPUs.

OpenAI doubles down on chatbots that do not truly transport thoughts. On the contrary, they blend them into comic misfigurations. And then, again… you guessed right… into hallucinations.

This failure is not diffuse. It does not require mystical interpretation or overcooked nerd analysis. It is visible in the math.

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