Re:OpenAI Completes Deal That Values Company at $157B
by s1artibartfast on Wednesday October 02, 2024 @05:59PM
(#41725352)
Expected return is set by risk and upside, not offering size. What do you think the risk of ruin is here? I think there is a substantial chance that Open AI wont exist in 5 years.
Re:OpenAI Completes Deal That Values Company at $157B
by danielmarkbruce on Wednesday October 02, 2024 @07:20PM
(#41725834)
There was an implication in there on risk. If you don't believe a company doing $4 bill of revenue is significantly less risky than the average VC investment, you might be in dreamworld.
Re:OpenAI Completes Deal That Values Company at $157B
by s1artibartfast on Wednesday October 02, 2024 @07:43PM
(#41725969)
My understanding is that it is 4B of losses, not revenue.
Re:OpenAI Completes Deal That Values Company at $157B
by danielmarkbruce on Wednesday October 02, 2024 @10:37PM
(#41726821)
Both are approximately true. But, anything software has some accounting for things (like training a model) that really should be categorized as capex instead of opex and it distorts the numbers.
Re:OpenAI Completes Deal That Values Company at $157B
by s1artibartfast on Wednesday October 02, 2024 @10:47PM
(#41726871)
My understanding was that total revenue was an order of magnitude lower, in the multi-millions.
Re:OpenAI Completes Deal That Values Company at $157B
by danielmarkbruce on Wednesday October 02, 2024 @11:07PM
(#41726998)
No, it's reported to be at a run rate of $4 bill pa.
Re:OpenAI Completes Deal That Values Company at $157B
by doctorpangloss on Wednesday October 02, 2024 @06:56PM
(#41725688)
Another POV is that, how many new household names familiar to adults can you think of? Since 2015? Basically TikTok and ChatGPT. If you include kids you get Fortnite, Snapchat and Roblox. Do you see why this is such a big deal?
Re:OpenAI Completes Deal That Values Company at $157B
by staticman2 on Wednesday October 02, 2024 @07:57PM
(#41726051)
Moviepass was a new tech driven household name in my social circle back in 2017. It... didn't end well.
Re:OpenAI Completes Deal That Values Company at $157B
by danielmarkbruce on Thursday October 03, 2024 @03:08PM
(#41733865)
"tech driven" is very generous.
In times gone by this would be a public company already. It's just an investment in a company with almost 2000 employees, revenue, products, brand etc. It's not an early stage VC investment, they aren't looking for a 10x.
The legal and compliance regime + depth of private capital + fear of reported vol in the US has made private investing the new public investing.