Comment by inder1
1 day ago
$730B on roughly $11B ARR is ~66x. Microsoft trades at 12x. The market is pricing OpenAI as infrastructure, not software. That's probably right. The implication is that the productivity gains accrue to whoever controls the infrastructure layer. The workers and companies building on top of it are taking the displacement risk without the upside.
Infrastructure is replacable and a race to the bottom though.
If OpenAI fails, you just change the endpoint URL and API key in your software.