Does OpenAI’s new financing make sense?
Garymarcus Substack
The author questions OpenAI's recent massive financing round, viewing it as vendor financing rather than true venture capital.Summary
The article critiques OpenAI's recent financing round, echoing investor George Noble's view that it resembles vendor financing rather than arms-length venture capital, especially given the company's lack of profit and perceived loss of technical advantage. The author attributes OpenAI's struggles to an unreliable product, high operating costs, and the absence of a technical moat, allowing competitors like Google and Anthropic to catch up. Consequently, the author finds the doubling of OpenAI's valuation in a short period, despite squandering its early lead, to be irrational, suggesting the company might eventually be viewed as the "WeWork of AI" because its finances do not add up.
(Source：Garymarcus Substack)