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A comment on OpenAI and Microsoft extend partnership. Parent comment

Re:OpenAI and Microsoft extend partnership by diogopublio on Monday January 23, 2023 @11:50AM (#34491353)
Maybe that is a bit too much

$0.01 per mean share would mean 6.5M USD valuation (current mkt cap is 65Bn). Accounting for dilution in investment rounds, let's say 4 x 20% dilution, that is around 52% penalty in valuation. Roughly, their entering price would be around 3-4M USD valuation. I am not saying in any way that this is a low return also, I may be wrong on my calculation, please, be free to correct me! ; )

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Re:OpenAI and Microsoft extend partnership by JumpCrisscross on Monday January 23, 2023 @01:33PM (#34492950)
> dilution in investment rounds

Using share prices side steps dilution, which is a problem when one linearly scales valuation increases to wealth gains.

[ Parent | on HN ]