alt Hacker NewsAI has driven the corporate suites of these companies insane.
> As part of the agreement, Disney will make a $1 billion equity investment in OpenAI, and receive warrants to purchase additional equity.
I don't know what kind of hypnosis tricks Sam Altman pulls on these people but the fact that Disney is giving money to OpenAI as part of a deal to give over the rights to its characters is absolutely baffling.
OpenAI and ChatGPT have been pioneering but they're absolutely going to be commoditized. IMO there is at least a 50:50 chance OpenAI equity is going to be next to worthless in the future. That Disney would give over so much value and so much cash for it... insane.
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Disney only exists now to exploit the IP it has bought. They just want to join the circle of OpenAI, Nvidia, Microsoft et al making meaningless deals with each other.
If OpenAI has exclusive rights to AI generation for Disney and other IP rights holders, that would create the kind of moat they've been missing so far.
I do wonder if this $1B is effectively protection money to stop OpenAI from bulldozing any more copyright laws.
How is buying equity "giving money"?
Is it charity to buy AAPL as well?
I really don't understand your perspective
> but they're absolutely going to be commoditized
I've been thinking the same since GPT3 too, and since ChatGPT, and since Claude and... But here I am, still paying for ChatGPT Pro because it's literally has the best model you can get access to for a fixed price each month, and none of the others so far come close. I still use Anthropic's and Google's models to compare/validate against, because I assumed at one point they'd surpass OpenAI, but so far they haven't. This all makes me believe less and less each day that it'll actually be commoditized.
If Disney could throw concepts at their properties like Mickey Mouse Clubhouse or Paw Patrol or any of their other CG shovel content (which my kid loves, of course) and have a new episode every day of the year, they would, and this lets them do that without employing the staff to make that happen. If all it took was a writer to put a pitch together and Sora to turn out an episode, that'd be a steal for $1B.
Why does Bayer spend what it spends putting its brand in front of you?
There’s no direct return.
They’ll get every dollar of that billion in mindshare over the next twenty years.
At what point does OpenAI become akin to AIG and 'too big to fail'?
OpenAI equity is worthless now. It's a company that absolutely cannot turn a profit, not with how much they're spending. And with a CEO that regularly lies about... everything (I'm sorry, you can't just spin up hundreds of gigawatts of power generation, especially not in the US, but also because the only company that makes gas turbines has a seven-year backlog).
The only people who don't think it's worthless are the people who would be worth a lot less if that were the case. Hug your loved ones and make peace with your gods, because the crash is going to be insane.
> OpenAI and ChatGPT have been pioneering but they're absolutely going to be commoditized.
I am not sure that it is very interesting that LLM apis are a commodity. It's not even a situation where it is _going_ to be a commodity, it already is. But so is compute and file storage, and AWS, Google and Microsoft etc have all built quite successful businesses on top of selling it at scale. I don't see why LLM api's won't be wildly profitable for the big providers for quite a long time, once the build out situation has stabilized. Especially since it is quite difficult for small companies to run their own LLMs without setting money on fire.
In any case, OpenAI is building products on top of those LLMs, and chatgpt is quite sticky because of your conversation history, etc.
Afaict it might be another circular deal? They buy equity (at what evaluation?) and options, and license some IP (is this the billion flowing straight back?) to OpenAI (not to SORA users?) for very restricted use cases, with a commitment from OpenAI to support Disney's copyright racketeering.