OpenAI is closing in on raising $6.5B. Largest VC raise in history

ChrisArchitect

Misleading OP.

This is not news from this week. Last week or even older.

https://www.bloomberg.com/news/articles/2024-09-19/openai-to...

daghamm

Time to invest in nvidia and Microsoft stocks I guess.

Because let's face it, that's where the money is going.

rahkiin

How could this ever IPO? And if it cannot, who could ever buy it at a multiple of this?

redleggedfrog

Just one more step for Altman in his Bankman-Fried journey.

l5870uoo9y

Apparently, investors do not see the loss of several leading engineers and the “missing” GPT-5 as a reason not to invest. Maybe they do have moat.

gdiamos

Do tech giants really want to give Sam that much money and power - it looks like the answer is yes.

What will he spend it on?

monkeydust

Curious does anyone use the secondaries private platforms like https://forgeglobal.com/ to get exposure to OpenAI or similar pre-IPO tech companies?

FinnKuhn

With inflation being a thing the biggest [sum of money] always leaves me a bit sceptical as people often don't account for it...

choilive

My guess is this investment was contingent on OpenAI going "for-profit".

andsoitis

If you can tell a good story, you can attract an audience with cash.

nuz

Way lower than the $100B I heard they were aiming for

neilv

The photo on the story looks like Altman is leaving with a backpack full of money?

devops000

What is the multiple over revenues/ ebitda?

bbqfog

Llama is good enough and I don’t have to give my data to a very sketchy organization. Happy to never use OpenAI again.

surfingdino

Looks like the real winner here is nVidia, because they will be getting their investment money back as payment for GPUs using money invested by MSFT and APPL. Or is that view too simplistic?

rvz

This is a definitive bubble.

Inference and training costs with $0 free AI models such as Llama which is good enough for AI solutions are all factors that are actually impacting OpenAI. What is not mentioned is that all these costs are quietly suffocating them whilst the company continues to suffer from a significant talent drain.

Companies like OpenAI cannot afford to continue racing their prices down to $0 and will just continue the pyramid scheme of raising billions to avoid bankrupting themselves over the said costs.

These fund raising rounds of A,B,C,D....X,Y,Z can't go on forever as these costs continue to suffocate the company. If OpenAI fails, there will be a horrific AI crash with hundreds of billions of dollars wiped out.

Timber-6539

For perspective, xAI raised an almost similar amount at a pre-money valuation of $18B. https://xcancel.com/elonmusk/status/1794975702812426595

tootie

This seems crazy. It's a truly innovative company and all but they don't have revenue to justify this nor a moat given how many plausible competitors sprung up so quickly. Elon Musk just reached into his own pocket and made Grok appear.

manishsharan

I , for one, thank the investors for subsidizing AI and making it affordable for us. I am not sure my measly US$20 per month will be enough to cover the cost of my usage but I am grateful for the fun I am having while the music plays.