311–320 of 529 posts
No, they didn't raise $122B as the HN title implies. A big chunk of that $122B is a "maybe" that depends on various things that need to happen in the future. Oh, man... I can't wait to see where this is going. Might not be pretty after all.
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This is a common structure. It's confusing to people who don't know finance or startups when they first see it. Even VCs don't get all of their fund money delivered into their bank account when they raise a funding round. It's inefficient and undesirable for everyone involved to have to move all of the money up-front, at once. If you talk to anyone in startup funding or finance they'll be familiar with the term "capi…
I've been involved in many startups, and this type of fundraising is not common, or at least it wasn't common before a few years or so ago The whole concept of talking about "runway" is basically calculating how much cash in the bank, that is actually in your bank account, will last. And this arrangement is different, as there are contingencies. In the past, VCs would just give you money in a particular series, and t…
No, they didn't raise $122B as the HN title implies. A big chunk of that $122B is a "maybe" that depends on various things that need to happen in the future. Oh, man... I can't wait to see where this is going. Might not be pretty after all.
What is this about? The title says "OpenAI closes funding round at an $852B valuation". It does not mention $122B.
Edit: the linked page's title is different and indeed states $122B.
Funny how quickly they have become like every other tech company. There is basically no hint of OpenAI the non-profit anymore. Edit: Why did this go from their press release to a news story?
Sir, I'm sorry to be the one to tell you this. But you've been in a coma since 2022 after a severe car accident. It's now the year 2026. That dead horse has already been beaten.
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I think this is reality-distortion field rivaling that of Jobs', and a crisis of faith. Nobody apparently believes that capital is worth investing into anything but AI.
> Nobody apparently believes that capital is worth investing into anything but AI. This is the main reason we see this insane investment into AI imo. If you imagine having lots of money, where should you invest that currently? Housing market: Seems very overvalued (at least in germany). Also with the current uncertainty and inflation its hard to make an investment that pays back over 20-30 years. So building is also…
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Why not announce the funding after the milestones have been met?
It's splashier this way, and is meant to shape the narrative, make other companies fear their warchest, and make hiring easier. Of course, those who are in-the-know won't be fooled, but the perception of the general public will be set in stone by the PR framing.
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> it would be military tech Anduril is the only company in this sector in the US that has any promise and they aren't even public. Most of us are not going to get our hands on this. Traditional defense sector looks more like Jeep, or Kodak...
Anduril has yet to deliver anything of consequence. I hope they shake up the industry but to say they are the next hot thing and write off the primes at this stage is premature.
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Ok second best :-) I wasn't alive in the 1920s though
True, but it is close enough in time that we should heed the lessons learned lest we repeat the experience.
The good news is that its almost all rich folks money on the line here and a small amount of dumb money. That's very different than, 2008 where it was mostly the indexes that got hit and that's more middle class/upper middle class concentrated.
I'm old enough to remember when companies worth $1 billion were called "unicorns." Now we have a company raising 122 times that? Valued at nearly 1000 times that...? At least they're throwing consumers a bone via the ARK deal. It's crazy how little AI exposure is available to anyone who isn't already wealthy and/or connected.
Even a billion dollars is crazy money. If you have a company with a subscription service that costs $100 yearly, you have ~2m customers, with a 50% profit margin. Your company makes ~100m every year in profit. Imo that's what is actually worth a billion dollars, maybe even a bit less.