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Disney said "Our IP is $1B for a 3yr license, or we sue" Altman said "We can pay with equity, but let's frame it as an investment" No cash exchanged

by npollock 10mo ago

robots0only 10mo ago
This is probably very similar to what happened!
deleted 10mo ago
[deleted]
redwood 10mo ago
Disney loves the idea of giving investors an angle to bet on AI
richard___ 10mo ago
Disney is actually paying $1B so it makes no sense. OpenAI gets the IP plus $1B.
- javawizard 10mo ago
  I'm actually curious, how do we know for a fact that this is the case?
  - DANmode 10mo ago
    Could you elaborate? Do you mean to say they’ll never take the payment?
    - deleted 10mo ago
      [deleted]
    - Thrymr 10mo ago
      What are the terms? It is not at all clear from the announcement. "part of this three-year licensing agreement", it _could_ mean the license cost is $1 billion, which Disney in turn invests in OpenAI in return for equity, and they're calling it "investment" (that's what's hypothesized above, but I don't think we know). Disney surely gets something for the license other than the privilege of buying $1 billion in OpenAI stock at their most recent valuation price.
      - DANmode 10mo ago
        Yeah - they save face.
      - sidewndr46 10mo ago
        Disney gets the opportunity to tell the board and investors that they are now partnered with a leading AI company. In effect, Disney is now an AI company as well. They haven't really done anything, but if anyone asks they can just say "of course we're at the forefront of the entertainment industry. We're already leveraging AI in our partnerships"
- KeplerBoy 10mo ago
  Disney gets to invest $1B pre-IPO, in what might become an even more valuable company (or crash and burn, we'll see).
  - stockerta 10mo ago
    Maybe the only good thing AI will do is take down Disney when it crashes. One can only hope.
evanjrowley 10mo ago
No cash because Disney's IP has no intrinsic value to begin with.

Disney said "Our IP is $1B for a 3yr license, or we sue" Altman said "We can pay with equity, but let's frame it as an investment" No cash exchanged

robots0only 10mo ago

This is probably very similar to what happened!

deleted 10mo ago

[deleted]

redwood 10mo ago

Disney loves the idea of giving investors an angle to bet on AI

richard___ 10mo ago

Disney is actually paying $1B so it makes no sense. OpenAI gets the IP plus $1B.

javawizard 10mo ago
I'm actually curious, how do we know for a fact that this is the case?
- DANmode 10mo ago
  Could you elaborate? Do you mean to say they’ll never take the payment?
  - deleted 10mo ago
    [deleted]
  - Thrymr 10mo ago
    What are the terms? It is not at all clear from the announcement. "part of this three-year licensing agreement", it _could_ mean the license cost is $1 billion, which Disney in turn invests in OpenAI in return for equity, and they're calling it "investment" (that's what's hypothesized above, but I don't think we know). Disney surely gets something for the license other than the privilege of buying $1 billion in OpenAI stock at their most recent valuation price.
    - DANmode 10mo ago
      Yeah - they save face.
    - sidewndr46 10mo ago
      Disney gets the opportunity to tell the board and investors that they are now partnered with a leading AI company. In effect, Disney is now an AI company as well. They haven't really done anything, but if anyone asks they can just say "of course we're at the forefront of the entertainment industry. We're already leveraging AI in our partnerships"
KeplerBoy 10mo ago
Disney gets to invest $1B pre-IPO, in what might become an even more valuable company (or crash and burn, we'll see).
- stockerta 10mo ago
  Maybe the only good thing AI will do is take down Disney when it crashes. One can only hope.

evanjrowley 10mo ago

No cash because Disney's IP has no intrinsic value to begin with.