Either it is going to start generating astonishing levels of profit soon like they claim and they wouldn't need it or they are a money furnace and this is the only thing that will save this from collapse

It comes on the same day Jensen gave an interview about how the US is going to lose the AI race to China.

After circular equity investments and then debt in off balance sheet entities, we are speed running to the government handout phase.

the only thing US is capable of beating china in these days is basketball so it is kind of funny that interview is making rounds…

and don't forget football

Well it’s gonna cure cancer and every other issue we have so obviously taxpayers should support it!!

Why was this flagged?

Because openai was given a federal backstop, it has a guaranteed customer as nation scale, and will be able to leverage that into massive profit in cost-plus service delivery?

Because it has gilt, it can go into markets and source money at gilt equivalent rates not risk venture rates?

Frankly, this just confirms to me it's a bubble close to popping. It's not mcdonnel Douglas being told "price no obstacle" doing space work in the 60s, it's the shipmaker for the south Sea bubble slave trade being told free teak and the first 20 ships are purchased.

They’ve already received almost $60 BILLION dollars.

That’s more investment than most companies ever see as revenue throughout their entire existence.

FFS, If one cannot make an established , profitable company with $60 Billion of free cash, they are an incompetent at best.

Fuck OpenAI. Fuck OpenAI. Fuck OpenAI.

This reminds me of the “too big to fail” arguments from the financial crisis.

We will prop up companies to try to contain some kind of financial contagion (pay no mind that it is also socialist corporate welfare)

Spoiler: it's never going to be profitable. It's pre-loading the government bailout it's expecting.

Early 2000 and 2008 put together.

Maybe more like 2008 recession-era GM?

Except we don't know if this will be the unexpected reason that it will all crash.

There may be measures involved that will prevent another 2008 but it's likely that there needs to be another unexpected blindspot this time.

I'll give you a hint, energy cannot be printed.