Tech
Taco Bell/OpenAI logos
(Bronson Stamp for Sherwood Media)

OpenAI is Taco Bell

A California-born company built on the steady repurposing of old ingredients, promising transcendence.

Adam Chandler

Going at least as far back as 1998, when The Onion published a piece headlined “Taco Bell’s Five Ingredients Combined In Totally New Way,” people have feasted on the idea that there was no better known (or more shameless) practitioner of repurposing of preexisting material than Taco Bell. The Mexican Pizza, the Double Decker Taco, the Crunchwrap — these are all iconic dishes that, while created in a lab and marketed euphorically as new and revolutionary for humanity, were really just fashioned from the beautiful slop of old. (Not that any of us complained!)  

But now another California startup is here to steal its thunder. Investors, boosters, speculators, and fans may fawn over the life-changing promise of OpenAI, but it’s really not doing much more than what Taco Bell did first. What are Nacho Fries and Doritos Locos Tacos but text-to-image concepts that you can actually eat? Like the Bell, which distinguished itself early through its social media and mobile ordering, OpenAI has collected its laurels as a technological pioneer with the assistance of no small amount of marketing furor. Even as futurists wring their hands about the AI-fueled dystopia ahead, anyone who’s seen “Demolition Man” knows that a market ruled by Taco Bell has been the stuff of nightmares for 30 years now. You could even argue that Taco Bell’s longtime slogans, “Yo Quiero Taco Bell” and “Live Más,” were early incarnations of a large language model, given their innovative use of Spanglish.

The similarities don’t end there. Like OpenAI, Taco Bell also had its early days of innocence, operating as an independent entity in a progressive new field. Its promise spurred imitators and competitors (Del Taco, Taco John’s, and eventually Chipotle) and, after some exciting years, was bought by PepsiCo in 1978 for an eye-popping $125 million, roughly $650 million in today’s market. After its acquisition, Yum! Brands’ Taco Bell began to operate much in the way that OpenAI has in its partnership with Microsoft: inelegantly sharing space and resources with decidedly less sexy brands (KFC and Pizza Hut) and tragically requiring Pepsi products at its fountains, a tribute tax to the gods of vertical integration. Even as we may still love Taco Bell, we know it could be better and, accordingly, regularly call to restore its former glories

So where will OpenAI go from here? Look to the Bell, friends. After all the froth and hype of infancy, OpenAI has followed Taco Bell by settling into its bland place at the adult table, subject to the same petty beefs, wild conspiracies, shameless back-scratching, and insatiable thirst for capital that typify the world of big business. One day, not long from now, we’ll find ourselves nostalgic for the OpenAI of yore.    

Ultimately, there is truly nothing new under the California sun. A company promising enlightenment and transcendence, built on borrowed intellectual property? Taco Bell did it first, baby. And like Taco Bell, OpenAI will flourish because there’s money there, there’s hunger for it, and people are way too lazy or overworked to cook things up themselves anymore. OpenAI won’t be the biggest thing in its market category, like Coca-Cola or McDonald’s, but, like Taco Bell, it will be a household name, which is no small thing — especially in an industry built on chips.

Read the other arguments for OpenAI's future here.


Adam Chandler is a journalist in New York and the author of “Drive-Thru Dreams.” His next book, “99% Perspiration,” will be published in January.

More Tech

See all Tech
tech

Meta jumps after it releases Superintelligence Labs’ first model: Muse Spark

The first big release from Meta’s Superintelligence Labs is here — a new multimodal reasoning model called Muse Spark. Shares of Meta spiked on the news, extending gains it had made earlier in the day on optimism over the ceasefire with Iran. The stock was recently up about 9%.

Meta has been playing catch-up in the generative-AI race, watching startups OpenAI and Anthropic leap ahead with ever more capable models, after the bungled rollout of its Llama 4 models.

After Meta went on an expensive hiring spree assembling an all-star team of AI researchers, investors have been eager to see the fruits of this team, and to see if the accompanying billions of capex dedicated to power it — $115 billion to $135 billion this year alone — were worth it.

Meta says the release is the first in a Muse family of models, which it says it will scale up over time. The benchmark scores released by Meta show Spark to be capable, with solid scores among popular benchmarks, but not any huge leaps over leading models from Anthropic, OpenAI, xAI, and Google.

Meta CEO Mark Zuckerberg said in a post on Threads:

“Looking ahead, we plan to release increasingly advanced models that push the frontier of intelligence and capabilities, including new open source models. We are building products that don’t just answer your questions but act as agents that do things for you. I am optimistic that this will support a wave of creativity, entrepreneurship, growth, and health. I’m looking forward to sharing more soon.”

After Meta went on an expensive hiring spree assembling an all-star team of AI researchers, investors have been eager to see the fruits of this team, and to see if the accompanying billions of capex dedicated to power it — $115 billion to $135 billion this year alone — were worth it.

Meta says the release is the first in a Muse family of models, which it says it will scale up over time. The benchmark scores released by Meta show Spark to be capable, with solid scores among popular benchmarks, but not any huge leaps over leading models from Anthropic, OpenAI, xAI, and Google.

Meta CEO Mark Zuckerberg said in a post on Threads:

“Looking ahead, we plan to release increasingly advanced models that push the frontier of intelligence and capabilities, including new open source models. We are building products that don’t just answer your questions but act as agents that do things for you. I am optimistic that this will support a wave of creativity, entrepreneurship, growth, and health. I’m looking forward to sharing more soon.”

tech

Alibaba launches new data center powered by 10,000 of its custom chips

Alibaba announced a new data center in southern China, in a partnership with China Telecom powered by its own Zhenwu chips. The new data center will contain 10,000 of the homegrown chips, and may scale up to 100,000 over time. The data center will be used for both inference and training.

China is racing to build out its own sovereign AI capabilities, and is making significant progress.

While Chinese companies and labs have released many competitive AI models, such as Alibaba’s Qwen, Z.ai’s new GLM-5.1, and the disruptive DeepSeek R1, China is still behind the US when it comes to AI chips, and it has struggled to get hold of the latest Nvidia GPUs due to US export controls.

China is racing to build out its own sovereign AI capabilities, and is making significant progress.

While Chinese companies and labs have released many competitive AI models, such as Alibaba’s Qwen, Z.ai’s new GLM-5.1, and the disruptive DeepSeek R1, China is still behind the US when it comes to AI chips, and it has struggled to get hold of the latest Nvidia GPUs due to US export controls.

Psychic Boy Wearing Head Band

Anthropic: Our new Mythos model is so powerful, we can’t release it

The unusual announcement of the model highlights its alarming new cybersecurity capabilities.

tech

Bloomberg: Apple’s foldable iPhone is on track for September after all

Scratch that... Actually, Apple’s foldable iPhone may be on track to debut later this year after all.

Hours after a report from Nikkei Asia said Apple was encountering engineering problems with the novel design that could lead to a delayed launch, Bloomberg’s Mark Gurman reports that sources within Apple say the premium foldable iPhone is still on track to launch in September, alongside the iPhone 18 Pro and iPhone 18 Max.

Shares of Apple had plunged more than 5% on word of a possible delay, but pared losses on Gurman’s story.

According to the report, the foldable iPhone will cost more than $2,000 and will be a key part of the company’s plan to revamp the iPhone lineup.

Shares of Apple had plunged more than 5% on word of a possible delay, but pared losses on Gurman’s story.

According to the report, the foldable iPhone will cost more than $2,000 and will be a key part of the company’s plan to revamp the iPhone lineup.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, Robinhood Derivatives, LLC, or Robinhood Money, LLC. Futures and event contracts are offered through Robinhood Derivatives, LLC.