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What a mess. When they have to write about how “circular financing” became highly regulated in the future, I hope they know that the problem was not confusing i
by bee_rider 1y ago
What a mess. When they have to write about how “circular financing” became highly regulated in the future, I hope they know that the problem was not confusing in the big picture.
Maybe I can get quoted in a sidebar:
“Hey Econ students, we normal people could see that the AI market was extremely gamed. We can see the investment feedback loop. It is just that the organizations continuing it have control over so much money, they don’t have to stop and ask society in general for permission to continue. Really this is a symptom of the wealth inequality crisis that they covered chapter…”
- tjwebbnorfolk 1y agoThis method of financing is not novel. But anytime you see an unnecessarily complex deal like this, one should think very carefully about why they didn't opt for a simpler method, e.g. simply selling stock in the open market. The reasoning behind such a deal are usually not a good sign for the underlying health of the companies involved.
- famouswaffles 1y agoI'm assuming this is what you mean by 'simply selling stock in the open market' so correct me if I'm wrong but Why would Open AI go public when they can raise so much private money they're valued at 500B ? It certainly wouldn't be for fear of a lack of investment. AMD is up 30% from this announcement alone.
- graeme 1y agoOpenai can't go public at present. They have an irregular non profit structure. They've been negotiating with Microsoft but can't convert out of their current structure without getting a new deal from Microsoft accepting the conversion.