and don’t have any prospect of becoming profitable
There’s a real twist here in regards to OpenAI.
They have some kind of weird corporate structure where OpenAI is a non-profit and it owns a for-profit arm. But, the deal they have with Softbank is that they have to transition to a for-profit by the end of the year or they lose out on the $40 billion Softbank invested. If they don’t manage to do that, Softbank can withhold something like $20B of the $40B which would be catastrophic for OpenAI. Transitioning to a For-Profit is not something that can realistically be done by the end of the year, even if everybody agreed on that transition, and key people don’t agree on it.
There’s a real twist here in regards to OpenAI.
They have some kind of weird corporate structure where OpenAI is a non-profit and it owns a for-profit arm. But, the deal they have with Softbank is that they have to transition to a for-profit by the end of the year or they lose out on the $40 billion Softbank invested. If they don’t manage to do that, Softbank can withhold something like $20B of the $40B which would be catastrophic for OpenAI. Transitioning to a For-Profit is not something that can realistically be done by the end of the year, even if everybody agreed on that transition, and key people don’t agree on it.
The whole bubble is going to pop soon, IMO.