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OpenAI completes deal that values the company at $80B
- rvz 3y agoThe actual reason why Kaparthy (and you'll see some other early employees) begin to consider leaving as they have already vested their shares and have taken profits during the hype.
- adamnemecek 3y agoKarpathy’s last stint was like a year.
- Aeolun 3y agoYou get new options to prevent exactly this issue right?
- cqqxo4zV46cp 3y agoNot prevent. Many people get out of the hamster wheel eventually.
- tehlike 3y agoinitial grant often out-trumps any refreshes you get if the company has gone through growth period.
- HarHarVeryFunny 3y agoHe already left a few days ago - said so on Twitter.
- atleastoptimal 3y agoit's worth the least it will ever be worth starting now
- loeg 3y agoCould be the peak!
- atleastoptimal 3y agoOnly chance that’ll happen is if AI is banned
- bonzaidrinkingb 3y ago> The actual reason It is a possible reason. Unlikely, since employees on the level of Karpathy already don't have to work for money. Hype, vesting, or comments like yours, are background noise for these people.
- deleted 3y ago[deleted]
- SideQuestBob 3y agoThat feels low
- ado__dev 3y agoAfter seeing Sora, I feel like they should add another 0 to that number.
- Brajeshwar 3y agoI believe that is not how it works. I'll guess that the Investors did not even saw those demo, neither are they regular users of OpenAI's products.
- mrcwinn 3y agoEvery investor I know or talk to is a very, very, very regular user of OpenAI's products - probably to a fault.
- asadotzler 3y agolikely a different class of investor.
- 15457345234 3y agoTheir brains must be scrambled like eggs from all the endless lies and hallucinations they're having to decipher
- deleted 3y ago[deleted]
- BlackjackCF 3y agoLikely those fundraising talks and numbers were already agreed upon and closed a while before they showed off Sora.
- trhway 3y ago$50M/employee. Looks like a record. Can also be a sign how AI increases productivity and value of an employee.
- chris222 3y agoNvidia has 26,000 employees and is worth 1.8 trillion which puts it at 69 million/employee.
- bamboozled 3y agoI bet most employees get a slight fraction of that 69 million. Imagine what having more millionaires would do for the world and the economy ? Such a silly system we’ve created.
- throwaway49849 3y ago[flagged]
- steego 3y agoYou think the total valuation of all companies divided by the total number of people comes out to a few cents? The US GDP per capita was $80k in 2023. The global GDP per capita is $13K. Even if you were to split up the valuation of OpenAI for every single person in the world, everyone would be getting $10. How did you arrive at a few cents and what point are you actually trying to make?
- throwaway49849 3y ago>You think the total valuation of all companies divided by the total number of people comes out to a few cents? No, where did I say that? The person I was replying to wants to share OpenAI's value specifically, so I only mention OpenAI. Also, I didn't say "a few cents", I said cents, intended as a relative contrast to "millions." >The US GDP per capita was $80k in 2023. The global GDP per capita is $13K. Yes, and the US per capita GDP would drop to $15.8k if the "excess" was redistributed to the rest of the world. But now everyone is equal, regardless of what they do, right? Is this fair? >Even if you were to split up the valuation of OpenAI for every single person in the world, everyone would be getting $10. That's not how it works and I think you know that. Where does this tangible $10 come from if there is no buyer? Or do you think someone is willing to spend $80B on a company which is then immediately destroyed because the money is taken from the shareholders and sent to everyone else? There would be no company left. Do you think that the very idea of this impending dissolution-upon-purchase wouldn't lower the value of the company drastically? >what point are you actually trying to make? That it's silly to suggest redistributing OpenAI compensation.
- m3kw9 3y agoThe janitor probably also backing up the truck
- omeze 3y agoAI comp is starting to form a 4th mode in the popular “trimodal” comp (https://blog.pragmaticengineer.com/software-engineering-salaries-in-the-netherlands-and-europe/ https://blog.pragmaticengineer.com/software-engineering-sala...) Have friends (not at OpenAI) that have been offered $1m+ yearly (these are not academic superstars either, solid staff engineers) to leave their startups and join Big Tech orgs. Good for them and good for the people of OpenAI, their revenue growth has proven me wrong and is really exciting for the future of productivity.
- thiago_fm 3y agoAI Hype. Same applies to NVidia(40x sales valuation! The pickaxe seller). Their technology can be easily replicated given enough time, just look at open source LLMs already beating GPT3. Google, Claude and others showing their strengths, already par to GPT-4 and even better in some scenarios. Training is expensive, but it isn't expensive up to what they are valued at. It's good because that capital likely made a few folks rich enough that they can consider pursuing their own companies, I'm curious about this. I find it hard to believe the current products OpenAI offers will have good revenue streams given to how competition is catching up, low pricing power and how specialized deep learning typically beats LLMs or most of the things they offer. I had even higher expectations when I saw this beginning, hoping that AI Startups would be able to do things that were previously not scalable with LLMs or OpenAI APIs, but haven't been able to see much here. The biggest winner on this play was clearly Microsoft, that managed to create a new product line, both with Github Copilot and Copilot to sell to businesses.
- gmerc 3y agoIf NVIDIA could be easily replicated, Intel would have done it.
- thiago_fm 3y agoGiven enough time they will and won't be able to get 70%+ margins for their hardware. There are multiple initiatives to eat their lunch which is based on Cuda.Their advantage isn't even in hardware, but rather how they've invested years and years in having integrated software + hardware solution for AI.
- j7ake 3y ago“Given enough time” assumes competition will catch up while leader stays idle. If leader is still innovating at a pace greater than any competition, then competition will never catch up.
- bamboozled 3y ago
- djjk4 3y agoIt will all evaporate the day we get a better demo from someone else. The game has become capital/market capture before that event happens. This is the colonization mentality of the west in over drive, only today capital/hype is used instead of armies. It will fail just faster than the colonies fell. The Hype engineering mega machine doesnt understand effiency is a double edged sword. Getting over efficient in one dimension (hype/market capture) weakens the machine in other dimensions.
- deleted 3y ago[deleted]
- artninja1988 3y agoAny idea who invested this round? Microsoft cant aquire more than 49% because regulators are on their ass looking at their relationship, right?
- choppaface 3y agoHeadline says Thrive Capital. Which maybe got the money from Microsoft Cayman Islands IV Inc.
- 7e 3y agoI call it OpenLIE. It's not open, not at all. Or call it GNU/OpenLIE, if you want to be pedantic.
- phantomathkg 3y agohttps://archive.is/LdWw1 https://archive.is/LdWw1