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It 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 p
by nrmitchi 4y ago
It 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.