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"Don't be curmudgeonly. Thoughtful criticism is fine, but please don't be rigidly or generically negative."
OpenAI raises $110B on $730B pre-money valuation
221–230 of 620 posts
Re: OpenAI raises $110B on $730B pre-money valuation
#222> The Information had previously reported that $35 billion of Amazon’s investment could be contingent on the company either achieving AGI or making its IPO by the end of the year. OpenAI’s announcement confirms the funding split, but says only that the additional $35 billion will arrive “in the coming months when certain conditions are met.” Incredible.
I'd love to know how they define AGI.
Obviously in a way they get the $35B.
Re: OpenAI raises $110B on $730B pre-money valuation
#223[flagged]
Re: OpenAI raises $110B on $730B pre-money valuation
#224Earlier quoted context omitted.
If nobody invested in OpenAI how long could they keep the lights on? They're not profitable yet, and a lot of the wealth that Sam Altman seems to be making revolves around strange circular deals. By comparison, Anthropic is projected to break even in 2028. Google's Gemini is already profitable.
What source do you have the Gemini is profitable? Are you referring only to the chat app, or to Google'a AI Ventures division? Or including Google Cloud AI related revenue?
Not agreeing with the parent, but that hardly matters. Google has a real business, advertising, that brings in $400 billion a year and income around $150B. They can afford to throw away tens of billions every year while still remaining immensely profitable and quite solid as a business. OpenAI has no such income to spend so it's as the above comments reflect, entirely unsustainable while Google's spending on AI is a drop in the bucket for them.
Re: OpenAI raises $110B on $730B pre-money valuation
#225This should probably change to https://openai.com/index/scaling-ai-for-everyone/ which has more details. > Today we’re announcing $110B in new investment at a $730B pre-money valuation. This includes $30B from SoftBank, $30B from NVIDIA, and $50B from Amazon.
Thanks, I've added that link to the toptext as part of merging a bunch of these threads.
We try to avoid having corporate press releases as the top-level link, though of course there are exceptions sometimes.
Re: OpenAI raises $110B on $730B pre-money valuation
#226Hopefully this will allow them to continue to provide me unreasonable amounts of compute for €20/month. Enjoying it while it lasts…
I feel the same. I can't believe the amount of shit I am throwing at Codex for a measly 20€.
Re: OpenAI raises $110B on $730B pre-money valuation
#227Only $730B? Why stop there? As long as we're making stuff up, let's go big. What about $10T?
You have to make it look semi-realistic
Re: OpenAI raises $110B on $730B pre-money valuation
#228Earlier quoted context omitted.
Interesting. I’m having anything on Gemini being profitable though, do you happen to have a source?
Here's one, basically AI is driving 15% of Google's profits at the end of 2025. https://advergroup.com/gemini-hits-650-million-users/ I didn't really realize how big Gemini was until I saw that Qualia was using it, they apparently used 0.01% of Geminis total tokens (100 billion) in about 3 months, they're in production with the title and escrow industry, so that's a great deal of data going through Gemini, unlike som…
> Here's one, basically AI is driving 15% of Google's profits at the end of 2025. https://advergroup.com/gemini-hits-650-million-users/
This does not at all tell us Gemini is profitable or driving 15% of its profits. The article does not mention profits even once. It then goes on to bizarrely compare Gemini's monthly active users to Open AI's weekly active ones.
Re: OpenAI raises $110B on $730B pre-money valuation
#229Earlier quoted context omitted.
I just don't know how to engage with these criticisms anymore. Do you not see how increasingly convoluted the "simple question LLMs can't answer" bar has gotten since 2022? Do the human beings you know not have occasional brain farts where they recommend dumb things that don't make much sense?
> Do the human beings you know not have occasional brain farts where they recommend dumb things that don't make much sense? Not that dumb, no. That's why it's laughable to claim that LLMs are intelligent.
I should note for epistemic honesty that I expected I would be able to come up with an example of a mistake I made recently that was clearly equally dumb, and now I don't have a response to offer because I can't actually come up with that example.
Re: OpenAI raises $110B on $730B pre-money valuation
#230IMO this looks largely like another circular investment. Amazon's investment is tied to OpenAI using AWS for their Frontier product and I assume Nvidia's conditions are that OpenAI continue buying hardware from them. Then there's SoftBank though given that those are the same guys that invested heavily in WeWork, I assume this is just very brash bullishness on their part. From my perspective, I hope that OpenAI surviv…
> On the one hand you can look at these companies investing and take it as a signal that there is something there (in OpenAI) that's worth investing in. On the other hand all these companies that are investing are basically getting that investment back through spending commitments and such and are just using OpenAI as a proxy for what is essentially buying more revenue for themselves. I don't understand how this is s…
In exchange for 100$ of your stock AND making your revenue numbers look insane for the next cycle ?
Also Nvidia margins are waaay higher than 20%