OpenAI raises less than half of $30B target

bronlund

No no no, don’t burst that AI bubble just yet. I haven’t finished all my side-projects.

bushbaba

Welp that’s not a good sign for the anthropic IPO. Curious what happens now that both OpenAI and Anthropic will face budgetary pressure. I don’t think they can raise prices, as it’d just open ppl to switch to Open source models.

seahawks78

Wow! Its bursting...

xnx

The end state is OpenAI as a division of Microsoft.

stuxnet79

How does this affect OpenAI's prospects in the next few quarters? Unlike Anthropic, OAI does not have an S-1 to pore over. Their finances are shrouded in rumor and speculation. I can't assess how much of a death knell a ~15B financing shortfall is.

minimaxa

Not looking very good fellas, Bot Swarm breaches, microslop laying off 27% of their workforce. If you have a billion users and 90% + are freeloaders, you need social media style ads to support growth, which no one likes. Plus they are all out of data training sets, they are buying zombie companies for their data. There are dozens of distillated clones, which are getting better every release. The only moat is expensive data centre builds with on-loan Nvidia inference and the Chinese embargo fears. Good luck out there.

vedanshchauhan9

What else can you expect? Look the markets right now. Its bleeding. Started with China and now US.

vedanshchauhan9

If an open source model locally does one job correctly, lets say writing the code, then what really do we need OpenAI and Claude for? But I guess there might be some time in that.

esFran

The problem with AI is that, this time, nobody was caught off guard. From small startups to tech giants, everyone bet heavily on it. There are very good open-weight Chinese models, and even a French miracle. There is no winner-take-all. So models are already a commodity, and will remain one for years. Companies must balance capex with very long payback periods against strict austerity everywhere else. Good news for customers, BTW.

lasky

this is more about the supply and demand of capital in any given moment than it is about the outlook of the company. as a litmus test: would you turn down the opportunity to buy OpenAI shares at this current valuation?