this post was submitted on 26 Sep 2024
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[–] [email protected] 79 points 2 weeks ago* (last edited 2 weeks ago) (7 children)

Least shocking news ever. This has clearly been in the works for a while. Not that it'll matter at this point, given that the notion of OpenAI making any profit is kind of a pipe dream right now.

This is mostly just a play to get investors to sink more money into covering their absolutely insane cash burn for another year.

[–] [email protected] 43 points 2 weeks ago* (last edited 2 weeks ago) (6 children)

They might not make a profit, but Altman will be able to extract a lot of wealth by using 7% of a billions of dollars valuation. Even if he doesn't sell any he can use it as collateral against loans to effectively turn them into cash.

[–] [email protected] 1 points 2 weeks ago (4 children)

But wouldn’t he have to repay such loans?

[–] [email protected] 2 points 2 weeks ago

Only if the collateral he put up goes down in value too much

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