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How do promises of $300B in future revenue somehow result in a $100B increase in Ellison's net worth today? - The $300B from OpenAI doesn't even start until 20
by panarky 1y ago
How do promises of $300B in future revenue somehow result in a $100B increase in Ellison's net worth today?
- The $300B from OpenAI doesn't even start until 2027 and runs through 2031
- We don't know anything about OpenAI's options to cancel, delay or modify the deal
- There's huge execution risk for Oracle, they have to scale up their operation by more 20x or 30x, obtain gear and staff and gigawatts of power
- Even if everything goes perfectly, and both Oracle and OpenAI perform, that $300B is revenue, not profit -- 70% or 80% of that goes suppliers for capex and operating costs
- That's an uncertain promise of a future stream of profits, and deserves a sizable discount to get back to present value
- Ellison owns about 40% of Oracle, so how does the share attributed to him personally get to $100B in today's dollars?
- aurareturn 1y agoI agree. I think Wall Street overreacted a little. $300b seems like absolutely best case scenario.
- wmf 1y agoIt's a bubble.