←back to thread

How OpenAI uses complex and circular deals to fuel its multibillion-dollar rise

(www.nytimes.com)
387 points reaperducer | 2 comments | 31 Oct 25 13:03 UTC | HN request time: 0.462s | source
Show context
jacquesm ◴[31 Oct 25 14:01 UTC] No.45772081[source]▶
These kinds of deals were very much a la mode just prior to the .com crash. Companies would buy advertising, then the websites and ad agencies would buy their services and they'd spend it again on advertising. The end result is immense revenues without profits.
replies(6): >>45772090 #>>45772213 #>>45772293 #>>45772318 #>>45772433 #>>45774073 #
zemvpferreira ◴[31 Oct 25 14:25 UTC] No.45772318[source]▶
There’s one key difference in my opinion: pre-.com deals were buying revenue with equity and nothing else. It was growth for growth’s sake. All that scale delivered mostly nothing.

OpenAI applies the same strategy, but they’re using their equity to buy compute that is critical to improving their core technology. It’s circular, but more like a flywheel and less like a merry-go-round. I have some faith it could go another way.

replies(13): >>45772378 #>>45772392 #>>45772490 #>>45772554 #>>45772661 #>>45772731 #>>45772738 #>>45772759 #>>45773088 #>>45773089 #>>45773096 #>>45773105 #>>45774229 #
1. some_guy_nobel ◴[31 Oct 25 17:03 UTC] No.45774229[source]▶
> OpenAI applies the same strategy, but they’re using their equity to buy compute that is critical to improving their core technology. It’s circular, but more like a flywheel and less like a merry-go-round. I have some faith it could go another way.

I'm commenting here in case a large crash occurs, to have a nice relic of the zeitgeist of the time.

replies(1): >>45774307 #
2. zemvpferreira ◴[31 Oct 25 17:10 UTC] No.45774307[source]▶
Happy to have provided. I’m not an AI bull and not in any way invested in the U.S. economy besides a little money in funds, but I do try to think about the war of today vs the war of yesterday. Hopefully that’s always en vogue.