I’m not sure multiple of revenue is meaningful right now. Nobody is investing in OAI because of their current business. Also there are tons of investments at infinite multiples once you realize that many companies get investments with no revenue.
Thanks! I mentioned anthropic in the post, but would similarly find it interesting if someone did a write up about cohere. It could be that OAI is not representative for reasons I don’t understand.
I’m not sure multiple of revenue is meaningful right now. Nobody is investing in OAI because of their current business. Also there are tons of investments at infinite multiples once you realize that many companies get investments with no revenue.
Yep, revenue multiples are a heuristic for expectations of future growth, which is what I care about
This is true, but I’m not aware of any investments on $0 revenue at the $10B scale. Would love to hear of counterexamples if you know of any![1]
Instagram is the closest I can think of, but that was ~20x smaller and an acquisition, not an investment
Anthropic reportedly got a $4B valuation on negligible revenue. Cohere is reportedly asking for a $6B valuation on maybe a few $M in revenue.
AI startups are getting pretty absurd valuations based on I’m not sure what, but I don’t think it’s ARR.
Thanks! I mentioned anthropic in the post, but would similarly find it interesting if someone did a write up about cohere. It could be that OAI is not representative for reasons I don’t understand.