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This is a silly article. Since MSFT took a ~49% stake in OpenAI, it records its share of OpenAI's net losses in the other income line under the equity method of
by _sword 11mo ago
This is a silly article. Since MSFT took a ~49% stake in OpenAI, it records its share of OpenAI's net losses in the other income line under the equity method of accounting. MSFT is offsetting its taxable income based on a prior investment
- toxic72 11mo agoI always chuckle when tech writers take a stab at financial statements
- zerosizedweasle 11mo agoHeard on the Street is the financial side of the WSJ.
- financetechbro 11mo agoThis is a funny sentence bc I consider the WSJ to be a financial news source in general
- zerosizedweasle 11mo agoIt's from the financial side of a financially focused paper.
- bunderbunder 11mo agoMoreover, the author of this article is the reporter who first reported on Enron's sketchy accounting: https://en.wikipedia.org/wiki/Jonathan_Weil https://en.wikipedia.org/wiki/Jonathan_Weil
- HaZeust 11mo agoAnything else you can add to the conversation?
- logankeenan 11mo agoCan you elaborate on this a bit more? Does that mean OpenAI had a ~$9.4 billion loss so MSFT needs to put 49% of that loss in their books?
- KoolKat23 11mo agoYes
- bunderbunder 11mo agoThe complaint is not that MSFT is reporting the loss. It's that, in terms of both the % of OpenAI and the dollar value of the stake, it's large enough that there should also be a related party disclosure. IANAA so I don't know how true that is. Just wanting to point out that I don't think you're responding to the key point of the article.