How OpenAI uses complex and circular deals to fuel its multibillion-dollar rise
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Re: How OpenAI uses complex and circular deals to fuel its multibillion-dollar rise
#2I can understand how someone's approach can be "hack all the things", however, at some point you run into the fundamental boundaries of the box you are in and you can't hack your way around those.
Re: How OpenAI uses complex and circular deals to fuel its multibillion-dollar rise
#3Re: How OpenAI uses complex and circular deals to fuel its multibillion-dollar rise
#4Okay, that article is a little bit shallow. I just summarises the headlines of the last weeks of circular deals. But is there also a more in depth article that sheds a little more light onto what this actually means? From a financial perspective?
Re: How OpenAI uses complex and circular deals to fuel its multibillion-dollar rise
#5"You give me a million GPUs for free, I'll announce that you have sacrificed a million GPUs to the machine gods, and your stock price will spike 200 times the value of those GPUs."
Re: How OpenAI uses complex and circular deals to fuel its multibillion-dollar rise
#6Hank green did a vlog on this a few weeks ago and it’s a great explainer.
Re: How OpenAI uses complex and circular deals to fuel its multibillion-dollar rise
#7[dead]
Re: How OpenAI uses complex and circular deals to fuel its multibillion-dollar rise
#8I honestly don’t get it. People love being swindled? Or people have enough cash to throw into the swindling machine even for no gain? Must be nice.
Re: How OpenAI uses complex and circular deals to fuel its multibillion-dollar rise
#9Okay, that article is a little bit shallow. I just summarises the headlines of the last weeks of circular deals. But is there also a more in depth article that sheds a little more light onto what this actually means? From a financial perspective?
It’s probably hard to do that in a news context because the real rationales are pretty tight.
Depending on your POV OpenAI and the surrounding AI hype machine is at the extremes either the dawn of a new era, or a metastasized financial cancer that’s going to implode the economy. Reality lies in the middle, and nobody really knows how the story is going to end.
In my personal opinion, “financial innovation” (see: the weird opaque deals funding the frantic data center construction) and bullshit like these circular deals driving speculation is a story we’ve seen time and time again, and it generally ends the same way.
An organization that I’m familiar with is betting on the latter - putting off a $200M data center replacement, figuring they’ll acquire one or two in 2-3 years for $0.20 on the dollar when the PE/private debt market implodes.
Re: How OpenAI uses complex and circular deals to fuel its multibillion-dollar rise
#10I was at a bitcoin conference in 2018. One guy in the booth told me that the company had set up a $100M fund to fund startups that agreed to build apps on their blockchain. I wonder where they are now?