Re:It's Time to Stop Taking Sam Altman at His Word
by jameslk on Saturday October 05, 2024 @11:40AM
(#41750631)
> If OpenAI does not make profit within two years, the "investment" will turn into a loan, which probably means bankruptcy.
I don’t believe this is accurate. I think this is what you’re referring to?:
Under the terms of the new investment round, OpenAI has two years to transform into a for-profit business or its funding will convert into debt, according to documents reviewed by The Times.
That just means investors want the business to be converted from a nonprofit entity into a regular for-profit entity. Not that they need to make a profit in 2 years, which is not typically an expectation for a company still trying to grow and capture market share.
I don’t believe this is accurate. I think this is what you’re referring to?:
Under the terms of the new investment round, OpenAI has two years to transform into a for-profit business or its funding will convert into debt, according to documents reviewed by The Times.
That just means investors want the business to be converted from a nonprofit entity into a regular for-profit entity. Not that they need to make a profit in 2 years, which is not typically an expectation for a company still trying to grow and capture market share.
Source: https://www.nytimes.com/2024/10/02/technology/openai-valuati...