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!
Comment on Microsoft seemingly just revealed that OpenAI lost $11.5B last quarter
sus@programming.dev 1 day agoSo 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.
jballs@sh.itjust.works 1 day ago
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.
SeeMarkFly@lemmy.ml 1 day ago
So it ALL depends on the definition of “soon”?
sus@programming.dev 1 day ago
Probably
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.