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There is some reality to them - they are extrapolations of latest investment round. Say OpenAI had been valued at $100B, but some investors can be convinced to
by HarHarVeryFunny 2y ago
There is some reality to them - they are extrapolations of latest investment round. Say OpenAI had been valued at $100B, but some investors can be convinced to buy a 10% stake for $15B, then the company is now "valued" at $150B (10% = $15B => 100% = $150B).
- HarHarVeryFunny 2y agoIt's a bit like the tail wagging the pig though, since reality is probably more like a 1% (tail) share being bought for $1.5B, and that determining the "value" of the remaining 99% (the whole pig).