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Isn't Musks offer just mischievous - making an offer at a lower valuation than OpenAI recently raised funds at, and I suspect substantially lower than any furth
by DrScientist 2y ago
Isn't Musks offer just mischievous - making an offer at a lower valuation than OpenAI recently raised funds at, and I suspect substantially lower than any further attempts to raise even more capital.
Sam Altman appears to be trying to rush to use the current hype to create a large capital moat, and Musks low ball/realistic ( take your pick ) offer is trying to interfere with the raising of cash - putting doubt about the hyped valuations in investors minds.
- ForHackernews 2y agoFeels like DeepSeek already did that far more effectively. What has xAI produced?
- codr7 2y agoCurrent AI valuations are delusional, which sort of makes sense since so is the technology and everyone hyping it to hell and back.
- DrScientist 2y agoA lot of the value of ChatGPT is built on the value of the information on the internet - what ChatGPT provides is a convenient way to access that in summary form. Look at the size of company that Google built off that same value ( via search rather than summarisation ). Google annual revenues are in the region of 350 billion - most of that derived, in one way or another, from people wanting to access information/entertainment on the internet.
- tim333 2y agoValuations are based on what you think the companies will do over a decade or two into the future. AI will almost certainly be a big deal over that time period.
- codr7 2y agoOr it will crash and burn once everyone accepts its limitations, the jury is still out.
- pjc50 2y ago$97bn is supposed to be a lowball offer? The technology definitely can't be reproduced by Chinese hedge funds for less?
- DrScientist 2y agoWhile I think AI is over-hyped in general, in terms of revenue 10 billion in 2025 from ChatGPT alone isn't unrealistic, so it's only 10/1 ratio ( not sure what their profit margin is on that ). The power of students prepared to pay to cheat at homework, software developers happy to cut and paste and corporates generating slides that nobody reads. Now obviously they have competition - whether that be Google itself or Deepseek etc and it will be interesting to see how much first mover advantages persists - the product doesn't feel inherently sticky - consumer customers could easily move. On the other hand if OpenAI manage to crack the corporate market - then that will be much sticker - and here they have a real lead - Microsoft Copilot is based on GPT-4 - and the signs are it's taking off in business - that will be hard to displace.
- sauwan 2y agoDefinitely just feels like a way to make it more painful/expensive for them to sell off their assets and become a for-profit entity.