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If OAI issued bonds, they'd be carrying all the risk. With these deals with Microsoft, Nvidia and now AMD, they're shifting some of that risk to powerful player
by rchaud 1y ago
If OAI issued bonds, they'd be carrying all the risk. With these deals with Microsoft, Nvidia and now AMD, they're shifting some of that risk to powerful players in the "too big to let fail" category.
- theli0nheart 1y agoWell, yeah, that's exactly my point. OpenAI is not issuing bonds because these transactions are way riskier than people are willing to admit.
- lotsofpulp 1y agoWho is “people”? Investors and people familiar with finance are well aware of the deal and its risks, as they are public information.
- theli0nheart 1y agoDo you recall what “people familiar with finance” did with CDOs and mortgage-backed securities during the financial crisis? That didn’t work out so well either, despite all parties being aware of the risks. It bears repeating my original question: if the risks are so minor, why is OpenAI simply not issuing bonds and buying AMD stock with the proceeds?
- lotsofpulp 1y agoI didn’t claim the risks are minor, I am just arguing against the notion of it being “printing money”, as if they have the powers of the Treasury. > Do you recall what “people familiar with finance” did with CDOs and mortgage-backed securities during the financial crisis? That didn’t work out so well either, despite all parties being aware of the risks. There was straight up fraud involved in the underwriting for the mortgages where verification (or rather underwriting itself) was not being done. This deal is a transparent bet on an outcome with no deceived party.