The pyramid scheme of raising money each year to avoid self-bankruptcy of billions of dollars worth of inference and training costs a year now must expand to investors in the middle east. (As US investors are almost out of cash and averaging themselves up.)
This scheme will soon become unsustainable like the last time the tech industry corrected in 2022.
Hopefully the participants don't experience any down-rounds or devaluations along the way. (It happened to many over-valued startups like Klarna, and Stripe and OpenSea.)
While I do believe the ever increasing “more money for a trillion dollar ai company scheme” is not infinitely viable, in what world are us investors running out of money?
> Hopefully the participants don't experience any down-rounds or devaluations along the way. (It happened to many over-valued startups like Klarna, and Stripe and OpenSea.)
Klarna is a debt as a service company. They were made to exist in an easy money world.
Opensea is a fraud as a service company. They existed in the crypto (more specifically nft) craze.
Stripes down round was due to changing economic winds, nothing due to the softening of their business
I thought the agreement is Microsoft gets full access to all the being models, except when they develop AGI.
If that's the case, I could see their relationship turning sour. OpenAI wanting to declare AGI to break ties with Microsoft; and Microsoft doing everything it can to deny that OpenAI has created AGI.
It is already there. Microsoft has intellectual property rights any pre-AGI innovations OpenAI makes, and most of the investment they have paid was in the Azure credits iirc, so basically in company scrip. And MS helped Sam oust rebels in the company and return. I would honestly consider them a part of MS now.
The Middle East is desperate to get out of oil. Heck, UAE has a Ministry for AI. And Saudi Arabia already gave a hundred billion to Softbank to burn, I'm surprised they haven't Khashoggi'd him yet.
This scheme will soon become unsustainable like the last time the tech industry corrected in 2022.
Hopefully the participants don't experience any down-rounds or devaluations along the way. (It happened to many over-valued startups like Klarna, and Stripe and OpenSea.)