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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: 0.426s | source
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nova22033 ◴[31 Oct 25 14:59 UTC] No.45772702[source]▶
Related

https://www.theregister.com/2025/10/29/microsoft_earnings_q1...

Microsoft seemingly just revealed that OpenAI lost $11.5B last quarter

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boringg ◴[31 Oct 25 17:09 UTC] No.45774300[source]▶
Real question -- how else is OpenAI supposed to fund itself? It has capital requirements that the most moneyed business companies can't provide. So it has to come up with ways to get access to money while de-risking the terms. Not saying the circularity works but I don't know how else you raise at their scale.

This money is well beyond VC capability.

Either this lets them build to net positive without dying from painful financing terms or they explode spectacularly. Their rate of adoption it seems to be the former.

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ASinclair ◴[31 Oct 25 17:18 UTC] No.45774402[source]▶
They could try selling their services above cost.
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cush ◴[31 Oct 25 17:34 UTC] No.45774546[source]▶
It's highway robbery how cheap tokens are right now. Enjoy the free lunch while it lasts
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1. boringg ◴[31 Oct 25 17:44 UTC] No.45774666[source]▶
Exactly - its like every VC company in the history of VC subsidized costs for growth. Once those tentacles have latched beware the exit costs though!
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2. omnicognate ◴[31 Oct 25 18:03 UTC] No.45774867[source]▶
The tentacles seem a bit limp and disorientated on this one. There are lots of them but they just seem to flop wetly against the windows. I hope they're not going to start decomposing and stink the place up.