alt Hacker NewsOpenAI closes funding round at an $852B valuation
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What will happen first? The Singularity arrives, and hyper-intelligent AI causes such rapid technological change that the world becomes unrecognizable overnight?
Or OpenAI pays off it's investors? Lol.
I am not sure if I believe in the Singularity or not. But it's kind of the best story ever to support the game of musical chairs that is Silicon Valley investing.
"Not yet profitable" doing a lot of heavy lifting here for an 852B valuation
well we do need at least two powerful AI companies, so they can cross checkout each other when I use them.
does Softbank run of out money i.e announce these deals but never follow up ?
This is so bad. OpenAI has already singlehandedly destroyed the global flash memory market with their war chest, this will just give them more power.
God help us if all of our retirement index funds are forced to buy this bankruptcy bomb.
This is going to be bad
Wow. I doubt Anthropic can raise that. Are they more efficient, can they do with less?
"Commited capital" - is this the same commited as the $500B for the Stargate project ?
Not gonna lie, I hate those announcements lately. It's full bullshit mode, worse than the Dot-com bubble. Numbers don't make any sense, any more, and yet journalist don't ask any real questions...
thats a really large number
the only lesson the common man should take from these valuations: start to protest against AI conpanies being included in the sp500!
unless you're a private investors in these preIPO, the whole plan is to get big enough, get forced entry into indexes, and leave early with everyone else holding the bag.
Inflation is a hell of a drug.
Money has lost all meaning in tech. 122 Billion raise! This is some kind of dream.
the hype machine knows no bounds. it should be illegal to publish such farcical claims when they are intended to manipulate markets...
People won't be able to afford to leave their beds because food prices will be too high to justify the energy cost of standing up.
Every joule of human energy is energy that could have been better spent to produce AI slop for other AI agents to consume.
Thsi is the most blatant pump & dump scam I've ever seen. It's going to crash like a meteor.
They have to focus on the distant future (where they are frankly unlikely to exist) because they are falling further and further behind in the immediate future.
Their latest desperate bid for relevance is a plugin for Claude Code that uses Codex as a second opinion. Please clap.
Good luck competing with Google which has "unlimited" budget.
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"Despite unprecedented capital investment in our R&D, our core product isn't getting meaningfully better so now we're building an app."
Doesn't really strike me as the kind of statement that comes out of a company that can sustain a ~$1T market cap...
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> The OpenAI flywheel is simple. More compute drives more intelligent models. More intelligent models drive better products. Better products drive faster adoption, more revenue and more cashflow. That gives us the ability to reinvest and deliver intelligence more efficiently to consumers, enterprises, and builders around the world.
-x-
In short, the musical chairs are still playing... Keep on walkin' round, y'all, till the music stops.
/s
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Fortunately, I was afraid that this was another bubble. /s
I wonder what the bet is here, long term that valuation is going to have to go up even further for this investment to make sense so they're clearly betting that at IPO time they'll be able to convincingly demonstrate AGI or something extremely close to it. That's a pretty risky bet, and meanwhile, whatever they come up with will be a commodity within a year. And that's besides OpenAI no longer being seen as the dominant player or the player with the best edge.
"This is not just product simplification. It is a distribution and deployment strategy."
I am so sick of AI writing.
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> We are now generating $2B in revenue per month
What??
> Within a year of launching ChatGPT, we reached $1B in revenue. By the end of 2024 we were generating $1B per quarter. We are now generating $2B in revenue per month.
They raised $122B.
122 / 12*2 = 5 years to get your money back (I simplify, I know revenue <> profit)
They are so big that almost no one can afford to acquire them. It is similar as someone would like to acquire MSFT or AAPL.
WCGW?
You do know that not all of these AI companies can become be trillion dollar companies, right? Easy come, easy go has no limit.