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

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251–260 of 620 posts

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

#251

That's a pretty lofty valuation for a company that has yet to demonstrate code generation anywhere near Anthropic's models if they're leaning into the engineering angle.

My guy, it's a tradeoff of autonomy vs thoroughness. You might not enjoy using the codex models, but to say they're way worse than claude is an error.

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

#252
post #192

There is not a single OpenAI model in the top 10 on openrouter's ranking page. The market is saying something about the comparative value of OpenAI. Edit: yes, it is true that many people do integrate directly with OpenAI. That doesn't negate the fact that Openrouter users are largely not using OpenAI.

Methodology problems aside, do we have any idea how big OpenRouter is as compared to the big providers? OpenRouter claims "5M+" users; OpenAI is claiming >900M weekly active users. I don't really think it's possible to learn anything about the broader market by looking at the OpenRouter model rankings.

Agreed it's not really good signal (many sampling biases) but user count is not relevant, most money is from heavy API users. 900M users with free or cheap subscription are nothing compared to even 10k heavy API users.

On the other hand, big users don't use openrouter. At $work we have our own routing logic.

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

#253

IMO 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…

It's not "continue" buying as much as this is NVIDIA fronting the money for (most of) the hardware OpenAI has already ordered from them. It's like borrowing rent money from your drug dealer.

Great analogy. ;-)

Doubt Jensen sees himself as a “dealer” but considering the vendor lock-in and margins, he pretty much is the Tony Montana of Ai Chips.

It’s nuts that this type of financing is legal.

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

#254
post #171

Earlier quoted context omitted.

Once they "reach AGI", will they have a big party on a carrier with a "Mission Accomplished" banner?

[flagged]

> They just need to put all of the engineers on HN out of work.

I think you've crossed the line from being an AI maxi to just rage baiting. This comment is a pointless anecdote at best, please take your ridiculous FOMO takes elsewhere.

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

#255

IMO 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…

It's not "continue" buying as much as this is NVIDIA fronting the money for (most of) the hardware OpenAI has already ordered from them. It's like borrowing rent money from your drug dealer.

Conversely it’s equity for an in-kind investment. Dave Choe taking the Facebook shares writ large.

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

#256

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

This right here is the right attitude.

Use these freebies/relatively cheap tools up 'whilst stocks last'.

I personally managed to create a very high quality marketing promo vid using grok. After spending weeks of enduring a lot of pain. But I saved myself tens of thousands.

I took advantage of 30 Grok premium subscriptions that were given to me via a free trial. There's no doubt the cost of services I took advantage of is in the tens of thousands.

But what do I care? I get what I want and then I get out before the freebies disappear.

LOL at the cry babys down-voting. Get mad bruh, get mad.

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

#257

Less than a decade ago companies reaching 1 trillion was still every much "out there". Now we have an IPO at almost 1 trillion. It's clear that the stock market cannot be considered normal anymore, held up on hopes at prayers at best.

Well, it's still VC market right now, and all the investors have vetted interest into the music not stopping.

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

#258
post #249
post #237

Earlier quoted context omitted.

I give you $100 cash and you give me $100 worth of stock in return. Now you give me $100 cash to buy something from me that cost me $80 to produce. I end up with $100 worth of stock in your company which cost me only $80. No? NVIDIA gross margins lately are like 75%, so it's more like you give me $100 to buy something from me that cost me $25 to produce, hence I end up with $100 worth of stock in your company and it…

> I give you $100 cash and you give me $100 worth of stock in return. Now you give me $100 cash to buy something from me that cost me $80 to produce. I end up with $100 worth of stock in your company which cost me only $80. No? Sure, but how's that a cheat code? If you normally sell something for $100 that costs $80 to make, and then use that $100 revenue to buy $100 of stock, this is an identical outcome for you.

They wouldn’t have bought $100 worth of product if the deal weren’t offered, because they didn’t have $100 to spend.

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

#259

I love how people think the company that basically invented ai is going out of business. Clearly OpenAI is a massive success and will continue to be

That’s what my Uber told me last night, not sure how he was able to get his hands on some stock!

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

#260
post #72

> Amazon will start with an initial $15 billion investment, followed by another $35 billion in the coming months when certain conditions are met. Those conditions are an IPO or reaching AGI [1]. Nvidia and SofBank will pay in installments. Also very interesting that Microsoft decided to not invest in this round. A PR statement was made though [2]. [1] https://americanbazaaronline.com/2026/02/26/amazon-to-invest... [2…

Has OpenAI laid out the specific definition of what an AGI is for this case? The one from their mission is quite vague and the general community has nothing close to a universal common definition... which means they will most likely just define it as what they already have when the timing is right.
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