alt Hacker NewsOpenAI closes funding round at an $852B valuation
Comments
thats a really large number
God help us if all of our retirement index funds are forced to buy this bankruptcy bomb.
Nah this raise (commitment) is... blah.
Last announcement I reckon pre-IPO and the inevitable collapse.
Inflation is a hell of a drug.
the hype machine knows no bounds. it should be illegal to publish such farcical claims when they are intended to manipulate markets...
Money has lost all meaning in tech. 122 Billion raise! This is some kind of dream.
didn't they just raise last month?
Thsi is the most blatant pump & dump scam I've ever seen. It's going to crash like a meteor.
Good luck competing with Google which has "unlimited" budget.
They have to focus on the distant future (where they are frankly unlikely to exist) because they are falling further and further behind in the immediate future.
Their latest desperate bid for relevance is a plugin for Claude Code that uses Codex as a second opinion. Please clap.
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"Despite unprecedented capital investment in our R&D, our core product isn't getting meaningfully better so now we're building an app."
Doesn't really strike me as the kind of statement that comes out of a company that can sustain a ~$1T market cap...
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> The OpenAI flywheel is simple. More compute drives more intelligent models. More intelligent models drive better products. Better products drive faster adoption, more revenue and more cashflow. That gives us the ability to reinvest and deliver intelligence more efficiently to consumers, enterprises, and builders around the world.
-x-
In short, the musical chairs are still playing... Keep on walkin' round, y'all, till the music stops.
/s
Fortunately, I was afraid that this was another bubble. /s
I wonder what the bet is here, long term that valuation is going to have to go up even further for this investment to make sense so they're clearly betting that at IPO time they'll be able to convincingly demonstrate AGI or something extremely close to it. That's a pretty risky bet, and meanwhile, whatever they come up with will be a commodity within a year. And that's besides OpenAI no longer being seen as the dominant player or the player with the best edge.
"This is not just product simplification. It is a distribution and deployment strategy."
I am so sick of AI writing.
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> We are now generating $2B in revenue per month
What??
> Within a year of launching ChatGPT, we reached $1B in revenue. By the end of 2024 we were generating $1B per quarter. We are now generating $2B in revenue per month.
They raised $122B.
122 / 12*2 = 5 years to get your money back (I simplify, I know revenue <> profit)
They are so big that almost no one can afford to acquire them. It is similar as someone would like to acquire MSFT or AAPL.
WCGW?
"Commited capital" - is this the same commited as the $500B for the Stargate project ?
Not gonna lie, I hate those announcements lately. It's full bullshit mode, worse than the Dot-com bubble. Numbers don't make any sense, any more, and yet journalist don't ask any real questions...