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IMHO, investors are happy to pay 23x ARR because Nvidia trades at 29x EV/sales and arguably OpenAI should support a higher multiple given it is a smaller entity

by ttul 1y ago

IMHO, investors are happy to pay 23x ARR because Nvidia trades at 29x EV/sales and arguably OpenAI should support a higher multiple given it is a smaller entity with more headroom for growth.

layer8 1y ago
That would imply that OpenAI has less competition to fear than Nvidia, which I’m doubtful is the case.
- signatoremo 1y ago
  That doesn’t imply anything. Each investor has their own take on risk. They’d invest if they think the risks are worth it.