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A comment on OpenAI Completes Deal That Values Company at $157B. Parent comment

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.
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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.
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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.
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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.
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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.
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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.
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