OpenAI is hemorrhaging cash. It could lose about $5 billion this year and may have to raise more funding. [The Information, paywalled; Data Center Dynamics] The Information report is based on OpenA…
The big men educated in Finance would probably scoff at my ignorant remark, but anyways here goes: isn’t this the modus operandi of these massively swollen tech “startups”? Spotify for example has been operating at a loss for what, 15 years?
The big men educated in Finance would probably scoff at my ignorant remark, but anyways here goes: isn’t this the modus operandi of these massively swollen tech “startups”? Spotify for example has been operating at a loss for what, 15 years?
Something like:
I’d expect the current interest rates make it a less viable strategy.
Also, money is fake but I’d expect there’s a limit to just how many billions you can burn before you can’t get away with it.
They need to be producing value even if it’s not “taxable profit” according to generally accepted accounting principles.
For Spotify, spending venture capital is fine as long as you secure more users, ready to ne milked later.
For OpenAI, if they burn through $5b in venture capital, their product needs to be ready to make $5b more than it was previously.