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OpenAI closes funding round at an $852B valuation

cnbc.com

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Re: OpenAI closes funding round at an $852B valuation

#451

Post by Bombthecat »

ef3dfd wrote: post #449
Bombthecat wrote: post #428

Earlier quoted context omitted.

It's for companies to replace people. Works out ok for them. Even four times isn't that much

Its simply not going to happen. People like Nadella call it 'tacit knowledge' - the reality is the work people do is much broader than what is producible by LLMs alone. Without the human, there is no work done. Unlike classic machinery, LLMs are not comparable in that you cant simply reduce labour input by X and be fine. Sure in the short term the consequences will not show up, but in the long term they will. Altman…

Of course there will be humans, just way less of them.

Instead of ten, you just need two or three

Re: OpenAI closes funding round at an $852B valuation

#452

Post by ef3dfd »

Bombthecat wrote: post #451
ef3dfd wrote: post #449

Earlier quoted context omitted.

Its simply not going to happen. People like Nadella call it 'tacit knowledge' - the reality is the work people do is much broader than what is producible by LLMs alone. Without the human, there is no work done. Unlike classic machinery, LLMs are not comparable in that you cant simply reduce labour input by X and be fine. Sure in the short term the consequences will not show up, but in the long term they will. Altman…

Of course there will be humans, just way less of them. Instead of ten, you just need two or three

You haven't put forward a compelling argument besides fluff.

This is so surface level and boring.

Most of you aren't really clued up on subject areas like Finance to talk about this stuff frankly. As long as a firm is beating its cost of capital, it will reinvest money to generate more growth. What does that mean? Oh. Hiring more people.

Re: OpenAI closes funding round at an $852B valuation

#453

Post by hvb2 »

aurareturn wrote: post #394
hvb2 wrote: post #350

Earlier quoted context omitted.

But if Gemini doesn't end up using the compute because of whatever reason, Google has other ways to monetize that compute. OpenAI doesn't? So the same money spent by OpenAI and Google doesn't carry nearly the same amount of risk?

OpenAI doesn't? Why not? They've openly said they could in theory sell compute to others if they can't use it all.

And who would be buying this from them? Let's say you're anthropic, would you give money to your competitor?

I'll also add that Google is already a player in that space so more likely to easily sell it off.

Re: OpenAI closes funding round at an $852B valuation

#454

Post by spicymaki »

LLMs are definitely a game changing technology, but there is just so much fake money in the market right now (circular deals, paper valuations, etc.) that I cannot take this seriously. At some point the musical chairs will stop and we will all be saying how could we let this happen? Where are the regulators (rhetorical question)?

Re: OpenAI closes funding round at an $852B valuation

#455

Post by aurareturn »

eiskek wrote: post #416
aurareturn wrote: post #411

Earlier quoted context omitted.

Given that Nvidia's forward earnings in 2026 is 19, which is lower than the average for S&P500, what do you think a "pop" will do to Nvidia stock? Wallstreet is already pricing Nvidia to have no growth above the average S&P500 company. More importantly, do you think that a "pop" means supply of compute is suddenly more than demand?

What the heck are you talking about? Nvidia’s value of growth assets are already priced in. You’ve written so many posts with glaring flaws. Are you trying to come across as smart? Lmao

Priced in as how?

What are the flaws?

Re: OpenAI closes funding round at an $852B valuation

#457

Post by justsomehnguy »

chronc6393 wrote: post #419
LaGrange wrote: post #404

Earlier quoted context omitted.

lol that’s a line so incredibly naive it hurts. One does not “simply” reduce spending.

> One does not “simply” reduce spending. Why does stock price go up after mass layoffs?

By your logic any company should just layoff everyone and profit on the stock price going to the infinity.

Company would no longer function of course but why it would matters if the stock price is through the Moon?

Re: OpenAI closes funding round at an $852B valuation

#458

Post by triceratops »

jacquesm wrote: post #328
timr wrote: post #326

Earlier quoted context omitted.

You can argue that current market multiples are higher than 1929 [1] - and they're certainly high - but this also ignores the mechanism that drove that crash, focusing only on the symptoms . We simply aren't doing the kind of consumer margin buying that drove the '29 crash. It isn't even close. Average schlubs were leveraged to the stratosphere to buy shares of boring industrial stocks. [1] https://www.multpl.com/shi…

> The US stock market has nearly tripled since then. Literally the best period of stock growth in history. The only thing I meant to point out was that a very high stock price by itself is no guarantee that there isn't a crisis around the corner. We plugged a lot of holes after 2008 and then reversed a lot of those fixes, I hear retail investors talking about their stocks at birthday parties again. Deja vu... of cour…

I actually calculated wrong. It went up 7.5x, not 3x.

In the roaring twenties stockbrokers allowed clients 10:1 margin. Investors were not as well-informed as they are today. There was no deposit insurance.

The SEC wasn't nearly as powerful as it was in 2024 and there was way more shady shit going on. In that respect, and the repeal of Glass-Steagall we're reverting to the pre-depression era.

Re: OpenAI closes funding round at an $852B valuation

#459

Post by 6031769 »

hrimfaxi wrote: post #448
evgen wrote: post #401

Earlier quoted context omitted.

I am amused that you think IT is going to respond to an unmanaged LLM tool that operates outside of the LLM policies all serious enterprises have set up by now and say 'wow, that is cool and maybe we should buy in to this!' What is going to happen is that the emplyee who tries to sneak OpenAI into our org is going to have two meetings set up by the end of the day, one with IT to ensure the whatever tool they installe…

What if that employee is in the C-suite?

Then the business was already screwed and this makes little difference?

Re: OpenAI closes funding round at an $852B valuation

#460

Post by nutjob2 »

aurareturn wrote: post #201
Swizec wrote: post #121

Earlier quoted context omitted.

> Wheras only profit should matter Profit is money you couldn’t figure out how to spend. During growth, you want positive operating margins with nominal profits. When the company/market matures, you want pure profits because shareholders like money. If you can find a way to invest those profits in new areas of growth, that’s better.

Not sure why you’re downvoted. Everyone wants to treat OpenAI like a car wash business where they need to make a profit almost immediately. I don’t know why people can’t understand that the industry is in a rapid growth stage and investing the money is more important than making a profit now. The profits will come later.

> The profits will come later.

The nearly $1T hand wave. Forgive me if I ask how. Might give it some credence if Anthropic and Google weren't pulling even with or surpassing them in various way or markets.

Whats worse is they mostly seem to have retail market name recognition which is arguably the hardest, or maybe the impossible market to make money from.

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