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Good move on selling it tbh. Don't really see how much of an edge companies like this have considering it's built entirely on the GPT-3 API. Congrats to Qasim.
by TotoHorner 4y ago
Good move on selling it tbh. Don't really see how much of an edge companies like this have considering it's built entirely on the GPT-3 API.
Congrats to Qasim.
- nrmitchi 4y agoIt seems like it's really just reselling a commodity. Which can be fine, many companies are successful doing it, and you could (in theory) build a more useful product on top of it. There's still the fact that many of these companies are not doing that, and are entirely dependent on GPT-3 continuing to be available to them at the given price point.
- lupire 4y agoIt doesn't sound like he made a lot of money doing all this. It's good hustle for an outsider put probably pays less than regular job for someone with his talent.
- nrmitchi 4y agoIt sounds like he had 3000 actively paying business users at the start of this negotiation, with revenue matching up with a series A level co (so likely significant, but definitely under $10M ARR. If they started with a benchmark valuation of ~$15M, cut that down a bit, and then negotiated up based on continued growth this could have easily clocked in at high 7-low-8 figures. I definitely wouldn't count that as "not a lot of money". Having meetings with Brockman and Altman afterwards also point to it not being an insignificant acquisition amount.
- passion__desire 4y agoTaking your criticism further is this analysis. https://www.allencheng.com/starting-a-business-around-gpt-3-is-a-bad-idea/ https://www.allencheng.com/starting-a-business-around-gpt-3-...