Comment on Is the AI Conveyor Belt of Capital About to Stop?
SaraTonin@lemmy.world 16 hours agoVCs typically want a return on their investments
Comment on Is the AI Conveyor Belt of Capital About to Stop?
SaraTonin@lemmy.world 16 hours agoVCs typically want a return on their investments
gian@lemmy.grys.it 15 hours ago
With a bank investement I get something back, even if less than what I invested. Could OpenAI pay back even half of what received ?
Which send us back to the starting point: what will happen when the VCs will start to ask for their money back or for their share of the revenue ? Inevitably the bubble will pop.
SaraTonin@lemmy.world 14 hours ago
At the moment OpenAI can’t pay back anything, becuase they’re hemmorhaging money. Losing billions a year. And there’s no path to profitability.
That’s why they make investors confirm that they’re considering their investments a donation. That’s also why it’s unusual.
It’s not unusual for the opening phases of big tech companies to be “operate at a massive loss until the competition has gone out of business”, as companies like Netflix and Uber can attest, but it is unusual for that to be done where the investors aren’t expecting to make a profit.