Comment by mbesto

2 months ago

> OpenAI has branding power

With consumers right now? Sure, but so does WhatsApp and IG, both Meta properties. Meta and Google also WAY better brand power with advertisers. So there's that.

> I can easily see them with $1 trillion in valuation and raise the a record amount of money in an IPO.

They have agreements of roughly in $1.5T infra spend (and that doesn't include their own S&M and R&D spend) for the next 5 years. They have to have a combined amount of cashflow to cover that $1.5T (mix of income, debt financing, and stock financing) + all their other spending. The CFO admitted that they may need to bail out data centers to cover this to stay solvent in the long run.

> Y Combinator literally teaches their companies that they can beat incumbents using focus and speed.

YC is literally not God when it comes to advice, so this point is moot. Meta and Google didn't come out of YC and yet still beat incumbents.

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mbesto

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aurareturn  2 months ago 

  With consumers right now? Sure, but so does WhatsApp and IG, both Meta properties. Meta and Google also WAY better brand power with advertisers. So there's that.

With AI. OpenAI/ChatGPT is synonymous with AI. People say "ask ChatGPT" the same way people say "Google it".

  They have agreements of roughly in $1.5T infra spend (and that doesn't include their own S&M and R&D spend) for the next 5 years. They have to have a combined amount of cashflow to cover that $1.5T (mix of income, debt financing, and stock financing) + all their other spending. The CFO admitted that they may need to bail out data centers to cover this to stay solvent in the long run.

I'm sure their $1.5t infrastructure commitments are based on hitting certain goals. Their comment about government support for data center is isn't a call for a bailout and taken out of context/exaggerated by mass media.

  YC is literally not God when it comes to advice, so this point is moot. Meta and Google didn't come out of YC and yet still beat incumbents.

Yes but Google also beat the incumbents in Yahoo, AOL. People thought no way back in 2000 as well. Heck, Google wanted to sell itself to Yahoo.

  • mbesto  2 months ago

    > I'm sure their $1.5t infrastructure commitments are based on hitting certain goals.

    If you're so sure, can you share your source?

    > Their comment about government support for data center is isn't a call for a bailout and taken out of context/exaggerated by mass media.

    The context was vague, but the idea that she was conveying is well understood - basically she was saying "we're going to get so big and so important for basic societal needs in the US that if we ever become insolvent the US government can step in and make sure we survive".

    > Yes but Google also beat the incumbents in Yahoo, AOL.

    That was my point - did you even read my comment?