How OpenAI uses complex and circular deals to fuel its multibillion-dollar rise

Post by creer » Sat, Nov 01, 2025, 1:00 AM UTC

mvdtnz wrote: post #375

Lord-Jobo wrote: post #329

Earlier quoted context omitted.

I also just don’t understand, as someone with no business experience, how they aren’t just pouring all of that money into enhancing their production capacity. That’s very clearly their bottleneck here. Yes, I’m certain they are spending an astronomical amount on that already, but why not more? Surely paying more money for construction of more facilities still nets gain even if you run into diminishing returns? Instea…

> as someone with no business experience, how they aren’t just pouring all of that money into enhancing their production capacity. That’s very clearly their bottleneck here. They know this madness can't go on forever. The last thing they need is to be left with billions of dollars of unused capacity when the bottom falls out of this very stupid bubble.

Post by creer » Sat, Nov 01, 2025, 1:10 AM UTC

solarwindy wrote: post #87

pols45 wrote: post #65

Earlier quoted context omitted.

Yup. Not just Nvidia. Just look at the quarterly results reported by Amazon, Google, Meta, Microsoft and Apple. Each one is reporting revenues never before seen in history. If you make 100 Billion a quarter you have to spend it on something. These guys are running hyper optimized cash extraction mega machines. There is no comparison to previous bubbles, cause so no such companies ever existed in the past.

100 billion a quarter is Alphabet, right? Given how much click fraud there is, and that every org and business under the sun is held to ransom to feature on the SERP for their own name even — it’s tempting to say Google’s become a private tax on everything.

Post by yosame » Sat, Nov 01, 2025, 1:28 AM UTC

0xbadcafebee wrote: post #165

zemvpferreira wrote: post #44

Earlier quoted context omitted.

There’s one key difference in my opinion: pre-.com deals were buying revenue with equity and nothing else. It was growth for growth’s sake. All that scale delivered mostly nothing. OpenAI applies the same strategy, but they’re using their equity to buy compute that is critical to improving their core technology. It’s circular, but more like a flywheel and less like a merry-go-round. I have some faith it could go anot…

Eventually when ChatGPT replaces Google Search, they will run ads, and so have that whole revenue stream. Still isn't enough money to buy the trillions worth of infrastructure they want, but it might be enough to keep the lights on.

Post by MangoToupe » Sat, Nov 01, 2025, 2:57 AM UTC

brookst wrote: post #345

thorncorona wrote: post #340

Earlier quoted context omitted.

It's like how every big co these days is ML. It will transition to LLMs as well. Just give it a few years.

Yep. Same vibes as “ha ha who needs internet connected appliances” (pretty much all appliances are internet connected now). And the apocryphal “there is a worldwide market for maybe 5 computers”.

Post by jimbokun » Sat, Nov 01, 2025, 4:36 AM UTC

throwaway106382 wrote: post #370

jimbokun wrote: post #334

Earlier quoted context omitted.

Journalists will know how to check it in high profile cases. And annoyed and suspicious techies can use it to check other people's content and report them as fake. Yeah, there are a lot of dumb people who want to be deceived. But would be good for the rest of us to have some tools.

This will just create a black market for AI generated video content that doesn't have a signature. Which I'm sure that China, Russia, hell even the US governments would not have a problem with because that would be extremely useful for them.