> got their equity vaporized Did anyone have equity though? I thought they (at l...

filmgirlcw · on Nov 20, 2023

There was a tender offer for employee shares valuing the company at $87b that was pulled because of this. Those would’ve been secondary share purchases by Thrive but gave employees a liquidity event. Now that’s off the table.

anonylizard · on Nov 20, 2023

OpenAI was guaranteed to be profitable, extremely so, if they just continued down the path Sam layed out like a week ago.

Now its guaranteed to generate 0 profits, so all that 'profit share/pseudoequity' is worth nothing.

qwebfdzsh · on Nov 20, 2023

> OpenAI was guaranteed to be profitable, extremely so,

Was it though? I'd agree that it was almost guaranteed to have a very high valuation. However profitability is a slightly different matter.

Depending on their arrangements/licensing agreements/etc much of those potential profits could've just went to MS/Azure directly.

edgyquant · on Nov 20, 2023

> Now its guaranteed to generate 0 profit

Literal fan fiction

acjohnson55 · on Nov 20, 2023

Developing, training, and running AI models is not cheap, and it's very much an open question of whether the money users are willing to pay covers the cost.