Comment on Microsoft seemingly just revealed that OpenAI lost $11.5B last quarter

SeeMarkFly@lemmy.ml ⁨1⁩ ⁨day⁩ ago

• Alphane_Moon@lemmy.world ⁨1⁩ ⁨day⁩ ago

  If you owe the bank $100, that’s your problem; if you owe the bank $100 million, that’s the bank’s problem.

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  • Kirp123@lemmy.world ⁨1⁩ ⁨day⁩ ago

    The difference between 100 million and 11.5 billion is about 11 billion. If you own a bank 11 billion that’s not only that bank’s problem, it’s the economy’s problem.

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    • boonhet@sopuli.xyz ⁨1⁩ ⁨day⁩ ago

      It’s about 11.5 billion, really.

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      • MattBlackAlien@lemmy.world ⁨1⁩ ⁨day⁩ ago

        It’s exactly 11.4 billion, really.

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    • sus@programming.dev ⁨1⁩ ⁨day⁩ ago

      So I wondered a bit how much it actually affects the economy.

      “S&P 500” companies’ market cap is about 57 trillion dollars with a P/E ratio of about 30. So openai by itself is dragging down the total s&p 500 earnings by only about 0.5%. The bigger problem is that there are multiple companies like openAI, and a large chunk of the entire economy’s valuation is tied to the promise that all the AI companies will somehow become profitable sometime soon.

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      • Jayjader@jlai.lu ⁨1⁩ ⁨day⁩ ago

        According to this article written in July, it’s a bit more dire than that if you take a step or two back. Basically, openai and their copycats/derivatives are being held up by investments from Microsoft, Google, Amazon, and Meta, who in turn are being held up by investments from Nvidia. If/when the whole chain collapses it’ll be more than 0.5% of earnings that disappear.

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      • jballs@sh.itjust.works ⁨22⁩ ⁨hours⁩ ago

        When you put it that way, I’m actually kind of mad. Most of my retirement is in index funds, so essentially OpenAI just pissed away half a percent of my life savings in the last quarter!

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      • Kirp123@lemmy.world ⁨1⁩ ⁨day⁩ ago

        If OpenAI goes down then it will start a domino effect as people lose confidence in AI and AI companies. That’s how the bubble pops.

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      • SeeMarkFly@lemmy.ml ⁨1⁩ ⁨day⁩ ago

        So it ALL depends on the definition of “soon”?

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    • Alphane_Moon@lemmy.world ⁨1⁩ ⁨day⁩ ago

      I was referring to the general concept behind the quote.

      I originally want to post the OG (apocryphal?) variant:

      Owe Your Banker £1,000 and You Are at His Mercy; Owe Him £1 Million and the Position Is Reversed

      But it sounds rather quaint these days.

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    • gian@lemmy.grys.it ⁨1⁩ ⁨day⁩ ago

      Partially, if OpenAI lose 11.5 billion, someone get 11.5 billion, the money is used to pay something it did not vanish in a cloud

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