alt Hacker NewsThis is a preview of what AI companies will face moving forward trying to raise capital. 16% is cheap if AI lives to its promise of massive returns. Problem is the ROI isn’t materializing and 16% would destroy most companies.
Meanwhile the traditional VC path is also drying up with OpenAI struggling with its latest round.
It’s going to get very ugly for the AI bros as cash starts to run out.
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If the Anthropic valuation over the past week and the only partial OpenAI raise is anything to go by, the ocean is already actively receding.
I think we're going to find who was swimming the most naked by February at the rate this is going. Particularly the dedicated Neoclouds who had to fund by pure debt without alternate revenue streams. The problem is not the tech, it's the money.
I don't think any of this matters. The only thing that matters is demand and supply.