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If LLMs are potentially the next phase of computing with as much momentum and economic importance as personal computers were in the 1980s, something is strange

If LLMs are potentially the next phase of computing with as much momentum and economic importance as personal computers were in the 1980s, something is strange about our financing markets that this level of capital is sought in private financing events rather than public market IPOs. For historical context, Apple IPO'ed in 1980 with a market cap of $1.8 billion, and about $117 million in annual sales. Even if I do an inflation adjustment on those numbers, that's a $6.9 billion market cap and $449 million in sales. I totally get that, strategically, companies like OpenAI (and, say, Stripe) don't need to IPO, because the capital is available in private markets. But I always thought there was something healthy about US tech companies reaching the financial mountaintop of an IPO and those companies then becoming subject to more regulation and disclosure, while also generating a more broadly shared economic prosperity for employees and for public equity investors.

shmatt 3y ago
Its much better trying to appease 15 VCs than the entire trading world. Literally anyone rich enough can create a meaningful stake in your company and start disparaging you in public if they wanted to. Im sure there would be an army of short sellers lined up the moment OpenAI IPO'd in its current state In the current state no one has financial interest in spreading negative news about them
- vinnymac 3y ago
  > In the current state no one has financial interest in spreading negative news about them Perhaps not as much incentive, but considering the relationship between M$ and OpenAI, I expect many to have interests in spreading negative news.
ldjkfkdsjnv 3y ago
Its financially advantageous because public companies are judged far too much on their short term quarterly results. Going public these days is actually inferior to staying private for capital intensive long term businesses. OpenAI can lose money for another decade, and private investors will fund it.

shmatt 3y ago

Its much better trying to appease 15 VCs than the entire trading world. Literally anyone rich enough can create a meaningful stake in your company and start disparaging you in public if they wanted to. Im sure there would be an army of short sellers lined up the moment OpenAI IPO'd in its current state In the current state no one has financial interest in spreading negative news about them

vinnymac 3y ago
> In the current state no one has financial interest in spreading negative news about them Perhaps not as much incentive, but considering the relationship between M$ and OpenAI, I expect many to have interests in spreading negative news.

ldjkfkdsjnv 3y ago

Its financially advantageous because public companies are judged far too much on their short term quarterly results. Going public these days is actually inferior to staying private for capital intensive long term businesses. OpenAI can lose money for another decade, and private investors will fund it.