its going to be interesting to see how easily they can raise more money. Their valuation is already in the $300B range. How much larger can it get given their relatively paltry revenue at the moment and increasingly rising costs for hardware and electricity.
If the next generation of llms needs new data sources, then Facebook and Google seem well positioned there, OpenAI on the other hand seems like its going to lose such race for proprietary data sets as unlike those other two, they don't have another business that generates such data.
When they were the leader in both research and in user facing applications they certainly deserved their lofty valuation.
What is new money coming into OpenAI getting now?
At even a $300B valuation a typical wall street analysts would want to value them at 2x sales which would mean they'd expect OpenAI to have $600B in annual sales to account for this valuation when they go public.
Or at an extremely lofty P/E ratio of say 100 that would be $3B in annual earnings, that analysts would have to expect you to double each year for the next 10ish years looking out, ala AMZN in the 2000s, to justify this valuation.
They seem to have boxed themselves into a corner where it will be painful to go public, assuming they can ever figure out the nonprofit/profit issue their company has.
Congrats to Google here, they have done great work and look like they'll be one of the biggest winners of the AI race.