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The pyramid scheme of raising money each year to avoid self-bankruptcy of billions of dollars worth of inference and training costs a year now must expand to in
by rvz 2y ago
The pyramid scheme of raising money each year to avoid self-bankruptcy of billions of dollars worth of inference and training costs a year now must expand to investors in the middle east. (As US investors are almost out of cash and averaging themselves up.)
This scheme will soon become unsustainable like the last time the tech industry corrected in 2022.
Hopefully the participants don't experience any down-rounds or devaluations along the way. (It happened to many over-valued startups like Klarna, and Stripe and OpenSea.)
- John23832 2y agoWhile I do believe the ever increasing “more money for a trillion dollar ai company scheme” is not infinitely viable, in what world are us investors running out of money? > Hopefully the participants don't experience any down-rounds or devaluations along the way. (It happened to many over-valued startups like Klarna, and Stripe and OpenSea.) Klarna is a debt as a service company. They were made to exist in an easy money world. Opensea is a fraud as a service company. They existed in the crypto (more specifically nft) craze. Stripes down round was due to changing economic winds, nothing due to the softening of their business None of these are analogous to OpenAi.
- deleted 2y ago[deleted]
- d--b 2y agoWhy do you say the middle east isn’t already in?
- CuriouslyC 2y agoOpenAI is going to end up in Microsoft's pocket.
- _fat_santa 2y agoMy prediction is this. 1. OpenAI hypes what they could do with their AI to get insane funding rounds (we are here) 2. OpenAI takes that money and tries to build the thing that they pitched in #1. 3. They will struggle to meet the goals set out in #1 and funding will slowly dry up 4. Training costs will overwhelm them and they will go bankrupt 5. MS buys them out for pennies on the dollar and integrates their models with their Copilot brand.
- pests 2y agoI thought the agreement is Microsoft gets full access to all the being models, except when they develop AGI. If that's the case, I could see their relationship turning sour. OpenAI wanting to declare AGI to break ties with Microsoft; and Microsoft doing everything it can to deny that OpenAI has created AGI.
- Yizahi 2y agoIt is already there. Microsoft has intellectual property rights any pre-AGI innovations OpenAI makes, and most of the investment they have paid was in the Azure credits iirc, so basically in company scrip. And MS helped Sam oust rebels in the company and return. I would honestly consider them a part of MS now.
- fakedang 2y agoThe Middle East is desperate to get out of oil. Heck, UAE has a Ministry for AI. And Saudi Arabia already gave a hundred billion to Softbank to burn, I'm surprised they haven't Khashoggi'd him yet.
- petra 2y agoIf they do that, no one who invests(or builds) risky stuff will ever work with them again. And Sam Altman is trying to rauise trillions from them for a chip factory...
- alephnerd 2y ago> And Sam Altman is trying to rauise trillions from them for a chip factory It's also a win-win for Abu Dhabi owned GlobalFoundaries and OpenAI.
- t0mas88 2y agoNo one should work with them today, but for enough money a lot of people still do. That won't change if they do another Khashogg.