Comment by Fraterkes
4 hours ago
(I think) I get how venture capital works, my point is that the bullish story for openAI has them literally restructuring the global economy. It seems strange to me that people are making bets with relatively slim profit margins (an average of 500m on a 10b investment in your example) on such volatile and unpredictable events.
What if your 10B investment encourages others to invest 50B and much of that makes it back to you indirectly via selling more of your core business?
I may be way off, but to me it seems like the AI bubble is largely a way to siphon money from institutional investors to the tech industry (and try to get away with it by proxying the investments) based on a volatile and unpredictable promise?
I think you’re right that the critical assumption in that example is the 5pct rather than the tax treatment.