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OpenAI raises $110B on $730B pre-money valuation

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441–450 of 620 posts

Re: OpenAI raises $110B on $730B pre-money valuation

#441

Earlier quoted context omitted.

> each model is roughly 2x profitable on its own, but each next model costs 10x the last. The whole thing only works if scaling keeps delivering. This is a decent argument, but it's not the death knell you think. Models are getting 99% more efficient every 3 years - to get the same amount of output, combined with hardware and (mostly) software upgrades - you can use 99% less power. The number of applications where AI…

We said all the same shit about VR, dude. Even had a global pandemic show up to boost everyone's interest in the key market of telepresence. Turns out the merry go round can stop abruptly.

No. Like many of us, I never saw much value in VR. LLMs have undeniable value that is general and broad. Now, does that mean OpenAI has a moat? No, it does not.

Re: OpenAI raises $110B on $730B pre-money valuation

#442
post #433

Earlier quoted context omitted.

How are ~1B active users not "moat"? Might have to pull out the "Haters gonna hate" like it's 2007

How is it a moat? Myspace had 300M active users on an early internet. If market share is a moat, IBM should still be the biggest tech company.

MySpace would have won had they not been outcompeted by virtue of their momentum though.

Re: OpenAI raises $110B on $730B pre-money valuation

#444
post #383

Hopefully this will allow them to continue to provide me unreasonable amounts of compute for €20/month. Enjoying it while it lasts…

Welcome to Claude Code; 200 USD at Claude, versus 3000 USD (literally) at Gemini. Well, then it will be Claude. If tomorrow Claude is 5000 USD, well, then it will be Gemini.

Replace "claude code" with "fentanyl" and reread.

This is what is called the drug dealer tactic. Once you need AI they will all cartel and you will pay half your salary (or your boss does) for it.

Re: OpenAI raises $110B on $730B pre-money valuation

#446
post #9

Without circular investments and valuations what would Open AI be worth? 100B? 300B? Entirely on revenue alone it seems like 20B. Current valuation appears to be two orders of magnitude off.

Well technically "Open""AI" is a SaaS company. It should be worth almost nothing due to AI being able to code AI (AI training is probably the simplest enterprise code).

Re: OpenAI raises $110B on $730B pre-money valuation

#448
post #380

Earlier quoted context omitted.

How many of those users are paying? Where is the profit? How many users will be willing to use ChatGPT if they had to pay? Might have to pull out the questions like its 2026.

> How many of those users are paying? About 5% according to a news article a few months ago. Will the other 95% stick around once ads or payments are required?

Most people will stick to the free product. Claude isn't free and not widely known beyond tech circles. Gemini, despite being good, also has a marketing problem and most non technical users still default to chatgpt.com for their day to day AI usage but that can change as Google redirects users to Gemini from so many surfaces it owns

Re: OpenAI raises $110B on $730B pre-money valuation

#449
post #437

Depressing to see trillions sloshing around, and yet no jobs to be found.

The jobs are going to be mining coal, mining rare earth, building nuclear reactors, building data centres etc. You may need to move to asia to get the job.

Progress!

I wish I could’ve lived and died one or two decades ago. Or better yet never even been.

Re: OpenAI raises $110B on $730B pre-money valuation

#450

Earlier quoted context omitted.

Just try it.

I have. It's great. Not 20 kloc/day great, though, and nobody believes that you are giving >1 kloc/hour anything more than the most casual glance.

I had to hack my scrollbar speed to 500% to get through all the code reviews in a day
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