Comment by ttul
1 day ago
IMHO, investors are happy to pay 23x ARR because Nvidia trades at 29x EV/sales and arguably OpenAI should support a higher multiple given it is a smaller entity with more headroom for growth.
1 day ago
IMHO, investors are happy to pay 23x ARR because Nvidia trades at 29x EV/sales and arguably OpenAI should support a higher multiple given it is a smaller entity with more headroom for growth.
That would imply that OpenAI has less competition to fear than Nvidia, which I’m doubtful is the case.
That doesn’t imply anything. Each investor has their own take on risk. They’d invest if they think the risks are worth it.