I appreciate the question you’re asking, to be clear! I’m less familiar with Anthropic’s funding / Dario’s comments, but I don’t think the magnitudes of ask-vs-realizable-value are as far off for OpenAI as your comment suggests?
Eg, If you compare OpenAI’s reported raised at $157B most recently, vs. what its maximum profit-cap likely was in the old (still current afaik) structure.
The comparison gets a little confusing, because it’s been reported that this investment was contingent on for-profit conversion, which does away with the profit cap.
But I definitely don’t think OpenAI’s recent valuation and the prior profit-cap would be magnitudes apart.
(To be clear, I don’t know the specific cap value, but you can estimate it—for instance by analyzing MSFT’s initial funding amount, which is reported to have a 100x capped-profit return, and then adjust for what % of the company you think MSFT got.)
(This also makes sense to me for a company in a very competitive industry, with high regulatory risk, and where companies are reported to still be burning lots and lots of cash.)
I appreciate the question you’re asking, to be clear! I’m less familiar with Anthropic’s funding / Dario’s comments, but I don’t think the magnitudes of ask-vs-realizable-value are as far off for OpenAI as your comment suggests?
Eg, If you compare OpenAI’s reported raised at $157B most recently, vs. what its maximum profit-cap likely was in the old (still current afaik) structure.
The comparison gets a little confusing, because it’s been reported that this investment was contingent on for-profit conversion, which does away with the profit cap.
But I definitely don’t think OpenAI’s recent valuation and the prior profit-cap would be magnitudes apart.
(To be clear, I don’t know the specific cap value, but you can estimate it—for instance by analyzing MSFT’s initial funding amount, which is reported to have a 100x capped-profit return, and then adjust for what % of the company you think MSFT got.)
(This also makes sense to me for a company in a very competitive industry, with high regulatory risk, and where companies are reported to still be burning lots and lots of cash.)