OpenAI Fundraising Set To Vault Startup's Valuation To $150 Billion (yahoo.com) 16
OpenAI is in talks to raise $6.5 billion from investors at a valuation of $150 billion, Bloomberg reported Wednesday, citing people familiar with the situation. From the report: The new valuation, a figure that doesn't include the money being raised, is significantly higher than the $86 billion valuation from the company's tender offer earlier this year, and cements its place as one of the most valuable startups in the world. At the same time, OpenAI is also in talks to raise $5 billion in debt from banks in the form of a revolving credit facility, said one of the people, all of whom asked not to be identified discussing private information.
The funding round is slated to be led by Thrive Capital, Bloomberg previously reported. Thrive declined to comment on the latest valuation. Microsoft, the company's largest investor, is also set to participate, and Apple and Nvidia, have been in talks about investing.
The funding round is slated to be led by Thrive Capital, Bloomberg previously reported. Thrive declined to comment on the latest valuation. Microsoft, the company's largest investor, is also set to participate, and Apple and Nvidia, have been in talks about investing.
one day... (Score:2)
they will blow the money (Score:2)
Would be nice if they spent it on buying GPUs and also on R&D, but let's face it .. they'll blow the money and have nothing meaningful to show.
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Would be nice if they spent it on buying GPUs and also on R&D, but let's face it .. they'll blow the money and have nothing meaningful to show.
Do you point the finger at the addict, or do you point the finger at the enabler.
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Both, the addict is the enabler's enabler. The enabler is the addict's addict.
Fonzi scheme (Score:2)
Comparison (Score:5, Informative)
$150B is the approximate market valuation [companiesmarketcap.com] of Morgan Stanley, Total Energies, Comcast and Goldman-Sachs. This valuation puts the company in the Top-100 companies in the world. These companies have a yearly revenue of $96B [fool.com], $237B [statista.com], $121B [fool.com] and $46B [companiesmarketcap.com], respectively.
OpenAI's yearly revenue is estimated to be around $3.4B [futuresearch.ai].
What did you mention about a bubble?
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Tech valuation is at least in part different because there is more potential for revenue growth (even if it may never come to pass).
To conclude that we're dealing with a bubble, you would have to successfully argue that that growth can or will never happen. It's actually very easy to see OpenAI increasing revenue 100x if they come up with some incredibly well working AI tool that they can indeed charge 2k a month for to businesses. I'm not saying they will, but they might, hence the valuation. All the compa
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Thanks, your comment is very clear; of course valuation depends on future expectations. In fact, this is the source of bubbles (over-inflated expectations).
I see it very hard to materialize, so I would not personally invest my money given such a huge valuation. What is your bet?
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That is a good question.
On the negative side:
- We've seen that multiple other companies have come at least very close to the performance of released OpenAI products, so that definitely spreads out the potential for growth over those companies.
- The stuff OpenAI showed for Strawberry (o1) today was a bit underwhelming imho; I don't expect it to make huge waves or be unattainable for competitors. If it is really good at coding, it may become the de facto backend for all software engineering AI tools for a whi
Re: Comparison (Score:2)
Thanks for your analysis! I am more skeptical, but I see all your points.
$6.5 B - is that their run rate? (Score:2)