Techrights

[Meme] Silicon Valley's "Successful Businessmen"

Posted by Roy Schestowitz on Dec 04, 2024

OpenAI: If OpenAI Survives Another 2 Years, It'll be About 30 Billion Dollars in Cumulative Losses/Debt

Money does not grow on trees. Lenders want their money back, eventually. Investors can be conned (robbed), but creditors can claim everything they gave. Wondering why Intel's CEO got the boot? The creditors and board ran out of patience.

Debt is not a currency. Debt is trouble, and trouble you cannot just kick down the road for eternity.

One extreme example of this is OpenAI, which faces endless lawsuits, expects to lose about 30 billion dollars, and cons the media into stating that somehow - absurdly - it is "worth" 160 billion dollars (whereas more honest media keeps stating - correctly - that OpenAI is more likely to face bankruptcy soon). What happened to honest media? Why do some news sites actively participate in and prop up Ponzi schemes? Is this their new "business model"?

OpenAI is only kept alive by companies that benefit from the huge bubble, e.g. Microsoft and NVIDIA. Heck, Microsoft can just borrow money from the bank and give that to OpenAI to delay the implosion. But is that a sound business plan? █