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REALITY CHECK. Multiple valuations cannot be revenue-centric with blown-up forecasts. The recent news on OpenAI facing financial challenges sheds light on the importance of controlled and regulated capital burn in tech ventures. Learn more about the situation here: Multi tier underwriting passes on risk to the secondary market with institutional /brokerage houses risk reduced. About time to revisit and fix it. https://lnkd.in/gYQR9M8b #TechNews #BusinessInsights

The hype around OpenAI continues. Is this a #marketing gimmick or there is reason to be worried about the cost-benefit analysis. What would investors & customers do? With backers like Microsoft and Sequoia will the hype continue? My take is that the founders have already made their money. 😁 Now it will be up to the lead investors to look for a suitor (exit) for this company at some point! They have invested much in this especially, Microsoft, so they will need to figure out how to handle the burn rate to keep this afloat. Interesting read. https://lnkd.in/ejRaQcxs

1. OpenAI CEO Sam Altman faced an internal investigation after his removal and return last year. 2. Altman mentioned in a recent meeting that the investigation would be "over soon" but provided no details. 3. Employees expect the investigation to conclude by the end of the first quarter. 4. Altman's transparency with employees has decreased, possibly due to increased scrutiny after his removal. 5. Recent surprises include Altman being the sole owner of the OpenAI Startup Fund, an SEC investigation, and the FTC's probe into OpenAI's ties with Microsoft. 6. Some employees feel pressure and confusion about OpenAI's operational structure and equity compensation in the form of profit participation units (PPUs). 7. Andrej Karpathy, a founding member, recently left OpenAI, citing dissatisfaction with his assigned work. 8. Ilya Sutskever, another key figure, remains silent on his future at the company. 9. Despite uncertainties, Altman's mood has improved recently, and other leaders like Greg Brockman are becoming more prominent. 10. Overall, there is anticipation for the investigation's outcome and lingering questions about OpenAI's internal dynamics.

Key take-aways: 1. Sam Altman is returning as the CEO of OpenAI after an attempted board coup. 2. Greg Brockman, the former president who quit in protest of Altman's firing, will also return. 3. The new board includes Bret Taylor, Larry Summers, and Adam D’Angelo. 4. Microsoft, a major investor, wants a seat on the expanded board of up to nine people to reset OpenAI's governance. 5. Both sides have agreed to an investigation into the situation. 6. Altman's return follows a period of chaos, employee revolt, and threats to defect to Microsoft. A future where an AI goes rampant is still there... God bless.

OpenAI without Sam Altman? Unimaginable, you might say. Yet here we are, in the midst of the unexpected. While some are excited about a possible reunion, I must respectfully disagree coming back after such mishandling. Fundamentally, leaders from the board, management, and key staff in OpenAI/Microsoft need to work together to resolve the tension between social responsibility and profitability. Once the trust is broken, I am not sure if this can amended soon enough to resolve this fundamental tension. What are your thoughts? do you believe Altman's return would resolve this tension for OpenAI? Check this out: https://lnkd.in/gszfbpG2

Does Sam Altman Own a Giant Chunk of OpenAI? What's YOUR Take on This News?"👀💼 In a turn of events at an all-hands meeting last Thursday, the big boss himself, CEO Sam Altman publicly put down rumblings suggesting he stands to gain overwhelmingly from his position at OpenAI. The rumor mill had been buzzing about a 'giant equity stake' that was allegedly heading Altman's way in exchange for his leadership role. Controversy swirls around this subject mainly because OpenAI is no ordinary beast; it's one of the sparkling jewels of modern tech; aimed at achieving artificial general intelligence beneficial to humanity. If anyone held large-scale ownership in such a game-changing entity, it would certainly have wide-reaching implications. But fear not! According to Mr. Altman himself — there are no such plans underway for him or any individual stakeholder for that matter, to receive extensive equity stakes in this highly-prized company - quashing such rumors once and for all. Of course, talk surrounding management and ownership structures in tech firms always sparks some fiery debates. So how do YOU feel about this issue? Share your thoughts below⬇️ and keep yourself informed by reading the full article here: https://lnkd.in/dscdcY92 #OpenAI #SamAltman #EquityStake #ArtificialIntelligence #TechLeadership #OwnershipStructure #TechControversies #RumorMill #OwnershipDebate #TechnologyNews

🤖💵 Reports of OpenAI’s $6.5B #investment talks at $150B valuation have been circulating over the last few days ahead of Strawberry launch. 📈 Thrive Capital, which had previously purchased OpenAI shares at an $86B valuation, is expected to lead the round with a $1B contribution. Microsoft, which has already invested approximately $13B in OpenAI, is also believed to be participating. Additionally, NVIDIA and Apple—who recently formed a product partnership with OpenAI—may join the investment round. 🤖 Read more here: https://lnkd.in/empR-djV #AI #ChatGPT #investment #valuation #tech #funding #news #technology

There are reports of possible bankruptcy of OpenAI And this is not the first time such information has appeared. It turns out that OpenAI still has huge operating costs and spends a lot of money on maintaining the infrastructure and functioning of models and training new ones. As you can read, OpenAI could reach $5 billion in losses. The infrastructure itself, which is on Microsoft servers, costs about 4 billion dollars. Of course, the list of all costs is longer. However, Microsoft, which owns 49% of the shares, can save OpenAI from bankruptcy. The services of these two technology giants are closely linked today. It is also worth quoting the words spoken by Microsoft's CEO Satya Nadella: “If OpenAI disappeared tomorrow, I don’t want any customer of ours to be worried about it, quite honestly, because we have all of the rights to continue the innovation,” Nadella told veteran tech journalist Kara Swisher last year. “We are below them, above them, around them.” Another interesting statement is that of OpenAI CEO Sam Altman: In a talk at Stanford in May, Altman said: “Whether we burn $500 million, $5 billion, or $50 billion a year, I don’t care… “We are making AGI, and it is going to be expensive and totally worth it.” This topic has sparked very lively discussions on popular internet forums. Reddit: https://lnkd.in/gwFrFCMm Hacker News: https://lnkd.in/gjwbmhbq You can read more here: https://lnkd.in/gcNZAAYy #AI #OpenAI #ChatGPT #Microsoft #company #bankruptcy

It was great to see OpenAI continuing to push the boundaries of what's possible, and the announcements at OpenAI Dev Day were indeed encouraging. However, as developers, there are still a few key areas where we hoped for further progress. Specifically, the current 128K input token and 16K output token limits, alongside the Tokens Per Minute (TPM) constraints, create challenges for scaling larger applications. Many in the community were expecting updates in these areas, especially given that competitors like Anthropic, Google Gemini, and Llama are surpassing these thresholds with 1M+ token windows. There's a tremendous opportunity ahead for OpenAI to continue innovating in ways that address the needs of enterprise-level and high-traffic use cases.

Two major pieces of news at OpenAI today. 1. The company is restructuring into a for-profit entity. 2. The CTO, Mira Murati, is leaving the company. It's hard to imagine how these two things are related. The first is clearly positive, and the second is clearly negative. I look at hundreds of Venture deals per year, I've NEVER seen one with a more complex corporate structure or governance than OpenAI. While the idea of a company giving back to society in some capacity is noble, combining a not-for-profit with a for-profit company is a really bad idea. Companies should innovate on product (which they've clearly done) not on corporate structure and governance. There are many reasons for this, but the primary reason is alignment between management, employees, and shareholders. All parties need to agree on the company's goal, which is usually to maximize shareholder value. In the case of OpenAI, the goal has been unclear for at least the last year due to its unnecessarily complex structure. We saw this manifest into a near-existential disaster last year when Sam was abruptly fired and then re-hired over a weekend---and we still don't know why. With the exit of Mira now official, openAI has lost 3 of their 4 Avengers, with Ilya and Greg having already announced their departures earlier this year. Sam is the last man standing, which is likely to make the investors in their most recent $6B round at $150B valuation a bit nervous since Sam is by far the least technical of the bunch. I don't know how this plays out, but it feels like the gap between OpenAI and its competitors is quickly closing.