5 ms·
They need to financially engineer a good looking quarter beforehand. Perhaps Larry Ellison can cut them a nice quid pro quo for a few months to make OpenAI loo
by krona 4mo ago
They need to financially engineer a good looking quarter beforehand.
Perhaps Larry Ellison can cut them a nice quid pro quo for a few months to make OpenAI look profitable (like the SpaceX/Anthropic deal), although that's probably unlikely given the debt Oracle is taking on to build it's infra.
- anukin 4mo agoYou are forgetting the google space x deal too
- deleted 4mo ago[deleted]
- Eji1700 4mo ago> They need to financially engineer a good looking quarter beforehand. Eh given the quality of recent IPO proposals I think they can just say there's a couple zillion air molecules to turn into gold and be done with it.
- deleted 4mo ago[deleted]
- tsunamifury 4mo agoyou mean the 50% of its company that was leveraged to purchase Paramount?
- taneq 4mo agoJust depreciate their server farms less this year to reduce losses. ;)
- JumpCrisscross 4mo ago> like the SpaceX/Anthropic deal I understand the scepticism around Google's deal with SpaceX, given the former holds a stake in the latter. But Anthropic buying SpaceX's compute doesn't have any related-party smell to it. That genuinely looks like SpaceX having cornered some valuable compute.
- SecretDreams 4mo agoGoogle owns 14% Anthropic and 6% xAI. When Anthropic spends on xAI, it benefits Google. When google spends on xAI, it benefits Google. When xAI spends on Google, believe it or not, that benefits Google. This is how a Ponzi -style circular financing scheme typically works.
- JumpCrisscross 4mo ago> When Anthropic spends on xAI, it benefits Google Unless Google is directing these transactions, this is not a novel issue. (We see a similar effect with mutual funds owning most companies [1]. It's a weak effect.) > This is how a Ponzi -style circular financing scheme typically works No. It's potential conflicts of interest. It's not circular financing. Circular financing follows the cash. When NVIDIA invests in OpenAI so OpenAI can buy NVIDIA chips, that is circular financing. [1] https://insights.som.yale.edu/insights/the-rise-of-the-mutual-fund-is-reducing-corporate-competition-and-hurting-consumers https://insights.som.yale.edu/insights/the-rise-of-the-mutua...
- SecretDreams 4mo agoI think it depends on how you view the payout google will get when these companies IPO and give Google exist liquidity and a nicer looking balance sheet, if needed, either or.
- JumpCrisscross 4mo ago> it depends on how you view the payout google will get when these companies IPO and give Google exist liquidity and a nicer looking balance sheet Google has a fantastic balance sheet with or without these investments. None of the recent deals have uniquely enabled an IPO. So they'd be playing to increase their stakes' value by a few points ahead of a dump, a dump that would almost certainly wipe out much more than they'd stand to gain by trying to make someone else a dollar so they get nickels and dimes out of it.
- deleted 4mo ago
- SilverElfin 4mo agoAnthropic basically did that by getting two months of free compute from SpaceX. As I recall, this is how they were able to claim that they were profitable. But in reality, they are only profitable for those two months.
- reactordev 4mo agoYou mean Oracle’s customers will face when their renewal bill includes infrastructure fees.