alt Hacker NewsThere’s a strong chance the IPO window has passed. I just don’t see investors willing to jump in here given all the questions about the financial viability of AI.
The bulk of those investing now are broadly just pumping cash into the fire to keep their prior investments from going to zero.
We have hit a mass deceleration of what the current tech can do with transformers. The tech is also on a path to hyper-commoditization which will destroy the value of the big players as there zero moat to be had here. Absent a new major breakthrough it looks like we’re well on our way into the “trough of disillusionment” for the current AI hype cycle.
Will be interesting to see how all this plays out, but get your popcorn ready.
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The revenue is in the ads. If they hit a decent run rate prior to the IPO then there's a viable path to profitablity and justification for the insane capex.
The Private Equity world already has a solution for this:
Nasdaq's Shame
There’s a strong chance the IPO window has passed. I just don’t see investors willing to jump in here given all the questions about the financial viability of AI.
Damn the narrative was just at "we are entering RSI" and this week all of a sudden it changed to "Transformers hit a wall AI winter is coming."
Very suspicious.
You must be living on a different planet than me. Enterprises are just now seeing that these technologies can actually have an impact, and the companies do not have a discretionary cost cap the same way consumers/hobbyists do, so they will pay based on value.
I would expect a lot of smart money to flow out of the Nasdaq-100 trackers in anticipation of this grift.
> There’s a strong chance the IPO window has passed
Ha, i'll take the other side of that bet. I'm not sure why you think they couldn't possibly IPO and you don't really specify why in your post.
Having been in the capital markets for 20 years, now is one of the better times to IPO and I'd bet that both OpenAI and Anthropic will IPO within 12 months.
There are lots of games you can play like releasing a small 10% float) if you are worried about not enough buyers.