John GerardHostGreg SterlingHost
Neil PolachekHostLet's start with the economics of that.
I'll jump ball on this one.
Who wants to take this one?

And maybe it's because baked into this story as a threat that all of my cool nerdy tech stuff is going to get taken away from me because these guys run out of money.

So the headline here, of course, is that $39 billion loss from OpenAI last year, some of it a bit suspicious, the usual suspects in terms of the build out of infrastructure and whatever, but some of it looks kind of funny and maybe shouldn't be a surprise given the reputation Sam Altman has for being clever about the ways that things are accounted for.

But it raises an important question here, especially as all these companies are looking at going public.

The cost of getting this technology out to you and me and letting us play with it has largely been borne by private markets so far, by private investors, VCs, hedge funds, PEs that want in on the AI revolution.

And one way to read what's happening is, well, they've finally gotten to escape velocity and they can go public so all those people can make some of their money back.

The other way to read it is that those guys are no longer willing to underwrite the losses, that they're basically saying enough's enough.

So we're actually not going to put any more money in to underwrite this interesting experiment.

And who's next in line? The public markets, which is the way that this offer goes.

And this, I mean, of course, incredibly reminiscent of .com, you know, 1.0, like very similar dynamics in terms of, you know, private underwriting.
Let's start with the economics of that.
I'll jump ball on this one.
Who wants to take this one?

And maybe it's because baked into this story as a threat that all of my cool nerdy tech stuff is going to get taken away from me because these guys run out of money.

So the headline here, of course, is that $39 billion loss from OpenAI last year, some of it a bit suspicious, the usual suspects in terms of the build out of infrastructure and whatever, but some of it looks kind of funny and maybe shouldn't be a surprise given the reputation Sam Altman has for being clever about the ways that things are accounted for.

But it raises an important question here, especially as all these companies are looking at going public.

The cost of getting this technology out to you and me and letting us play with it has largely been borne by private markets so far, by private investors, VCs, hedge funds, PEs that want in on the AI revolution.

And one way to read what's happening is, well, they've finally gotten to escape velocity and they can go public so all those people can make some of their money back.

The other way to read it is that those guys are no longer willing to underwrite the losses, that they're basically saying enough's enough.

So we're actually not going to put any more money in to underwrite this interesting experiment.

And who's next in line? The public markets, which is the way that this offer goes.

And this, I mean, of course, incredibly reminiscent of .com, you know, 1.0, like very similar dynamics in terms of, you know, private underwriting.
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