Edi Zitron has an exclusive report on OpenAI’s 2025 finances:
The financial condition of OpenAI is deeply concerning. $38.53 billion in losses are astronomical, and far higher than most believed it would be. Losses also appear to be mounting year-over-year at a dramatic rate, and I’m not sure how this company finds a way toward any kind of sustainability or profitability.
They spent 33 Billion more to make 10 billion more. Brilliant business!
Anyone else live through the dot-com bubble?
Or the real-estate bubble?
This is not exactly like either one of them, but it definitely has echoes of both. The shenanigans of things like Enron and banks selling repackaged loans -> this circle jerk of cash flow between all these gigantic tech companies. Most everyone commenting on it - but lots of people simping for and wishcasting in their stock purchases anyway…all feels strangely familiar.
I have a feeling this one is going to hurt as much as those two. The oligarchs responsible for all this shit may end up slightly less rich in some cases, and probably NONE of them will to fucking prison where they deserve, but all the rest of us are going to have to weather one fuck of a storm…
What does it usually mean when large sectors of the tech economy are propped up by stock price?
🫧
I don’t know how the US economy works, much less a self sustaining one…
Hoping it dies a swift death. 🤞🖕🤝👋
This is not how accounting works, you want your companies to lose money on changes in warrant liability fair value, it’s a non-cash expense and the alternative (making money on it) is way WAY worse.
You also want your bank to lose money on credit valuation adjustments in their CDS portfolio!
