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

• Kirp123@lemmy.world ⁨22⁩ ⁨hours⁩ 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 ⁨22⁩ ⁨hours⁩ ago

    It’s about 11.5 billion, really.

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    • MattBlackAlien@lemmy.world ⁨21⁩ ⁨hours⁩ ago

      It’s exactly 11.4 billion, really.

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      • boonhet@sopuli.xyz ⁨20⁩ ⁨hours⁩ ago

        Well, if you want to get exact, sure. But if we’re talking about half units, like 11 and a half billion, then 11.4 is so close to 11.5 there’s no difference and calling it just about 11 sorta implies that it’s a more significant difference IMO

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  • sus@programming.dev ⁨21⁩ ⁨hours⁩ 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 ⁨17⁩ ⁨hours⁩ 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 ⁨15⁩ ⁨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 ⁨17⁩ ⁨hours⁩ 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 ⁨20⁩ ⁨hours⁩ ago

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

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      • sus@programming.dev ⁨18⁩ ⁨hours⁩ ago

        Probably

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  • Alphane_Moon@lemmy.world ⁨20⁩ ⁨hours⁩ 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 ⁨20⁩ ⁨hours⁩ 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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