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OpenAI Fundraising Set to Vault Startup's Value to $150B
- deleted 2y ago[deleted]
- jazzyjackson 2y agohttps://archive.is/m51N9 https://archive.is/m51N9
- jazzyjackson 2y agoWhen OpenAI borrows money does it just get immediately spent on salary and azure invoices, or is there some other infrastructure that they are building up?
- frankharv 2y agoDidn't Microsoft invest $1 Billion Dollars into OpenAI Company/Foundation/Scam too? What are they burning all this cash on?
- frankharv 2y agoI guess the infrastructure is called Stargate. I hope they fall in and we never hear from them again. https://www.reuters.com/technology/microsoft-openai-planning-100-billion-data-center-project-information-reports-2024-03-29/ https://www.reuters.com/technology/microsoft-openai-planning...
- BillSaysThis 2y agoI don't think a company should be raising funding at this level because it implies that at some eventual IPO the market cap will be $750B or more--no private investors are going in looking for less than 5x return. Honestly any valuation over, say, $50B should be in the public markets.
- airstrike 2y agoDo you believe public markets create better value for society than private ones?
- riku_iki 2y agoretail investors may be not as efficient as private professional investors, but public markets allow retail investors to participate in wealth creation.
- idrathernot 2y agoIt will IPO once the “accredited investor” class have an inkling that the company has ~2 years of good growth left so they can make it past the lockup period and ride off into the sunset. Rinse and repeat. There is so much private capital out there, the only reason to go public is because retail investor folks lack the means for proper diligence & restitution.
- riku_iki 2y agofunding -> IPO is relatively short term gain, where private investors indeed have significant advantage. But there is also long term gain: 10-100y after IPO stocks in your 401k like google, facebook, tesla, microsoft, ibm, etc.
- BillSaysThis 2y agoFor a company like OpenAI I do. Especially in regards to the greater scrutiny.
- htrp 2y agoI don't understand why they need a 5 billion dollar revolving credit facility.
- airstrike 2y agoI guess it's a reasonable enough financing decision for a fast growing pre-IPO company which cannot issue public debt. Gives them optionality and access to short-term debt at likely favorable terms, as I imagine banks are trying to please them however they can to win future mandates
- idrathernot 2y agoHigher free cash flow bolsters the upside case for the next raise
- yumraj 2y agoThat’s a massive valuation. Are they preparing for a potential down turn, else at this level they might be setting themselves for a down round. Unless people believe that OpenAI could be the first $1T valuation startup Unicorns are $1B valuation startups. What’s a good name for a $1T valuation startup? God Statup?
- fragmede 2y agoKilocorn
- malux85 2y agoPhoenix? Might burst into flames at any point, but will likely be reborn in some form from the ashes
- LoFiSamurai 2y agoLove this!
- yumraj 2y agoUnicorns were supposed to be mythical creatures, which Phoenix is too - so that works. But Phoenix has a negative connotation with the burning into flames part. Not sure if many startups would like to call them Phoenixes :)
- Asraelite 2y agoWhat about pegasus? Even better would be a pegacorn/alicorn, but not enough people are familiar with those names. It seems like the natural next step would be a unicorn that's taken flight.
- jjwtieke 2y ago$150b is enough to buy every single human alive 3 Big Macs. I wish VCs would make this happen rather than pouring $$ into OpenAI.