Comment by mgfist
21 hours ago
> OpenAI’s business continues to surge. DealBook hears that the company’s annual recurring revenue has soared to $13 billion, up from $10 billion in June — and is projected to surpass $20 billion by the end of the year.
This is why.
Of course $300B still implies a lot of growth, but when you're growing 100% in 6 months at $10B in ARR, you can demand a lot.
And what's the profit on the 13B?
Irrelevant at this stage.
the problem with the post-dotcom market in a nutshell. everything’s a bubble. bubbles have more durability now. until they don’t.
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Enron was also "growing" a lot when it was in full "paper tiger" mode.
Ok, and? Last I heard were talking about OpenAI, not Enron.
Come on: openAI has a product that you can "touch" - both on your phone /home computer and at work, since their tech sits behind copilot (msft hit the jackpot with the licence).
It is a virtual product yes, but come on - no vapoware.
At work I see it - people want the better (and more expensive ) licences
Enron was a literal energy company, and also vaguely "the next big thing", "America's Most Innovative Company". There's a lot of parallels with how OpenAI is being hyped up and whether it actually merits a 12-13 figure valuation. See also WeWork, et al.
Given what we know about the CEO, it would not come as a shock if in a couple years we learn there was some good old accounting fraud involved.
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