[qeternity]

> 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.

Lmfao where did you get this from? Microsoft has less than half of that revenue, and is valued > 10x than OpenAI.

Revenue is not the metric by which these companies are valued...

[Yizahi]

The difference between Microsoft and OAI is that Microsoft can spend a lump sum of money on Excel and a fraction of that on its support and then sell it infinitely with almost no additional costs. MS can add a million of new Excel users tomorrow and that would be almost pure profit. (I'm very simplifying)

OAI on the other hand must spend a lot of additional money for every single new user, both free and paid. Adding million new OAI users tomorrow would mean gigantic negative red hole in the profits (adding to the existing negative). OAI has no or almost no benefits of scale, unlike other industries.

I have no knowledge about corporate valuations, but I strongly suspect that OAI valuation need to include this issue.