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Comment by riku_iki | Hacker News Reader

> Altman says that OpenAI will top $20 billion in ARR this year, which certainly seems like significant revenue generation. [1]

fixed this for you

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And lose how much money doing it?

They make up for it in volume

Can he safely lie about that? Or would that be a slam-dunk lawsuit against him? He's already got Elon Musk on his enemies list.

People need to understand that OpenAI is not a publicly traded company. Sam is allowed to be outrageously optimistic about his best case scenarios, as long as he is correct with OpenAI's investors. But those investors are not "the public", so he can publicly state pretty much anything he wants, as long as it is not contradicting facts.

So he cannot say "OpenAI made 20B profit last year." but can say "OpenAI will make 20B revenue next year." Optimism is not a crime.

I am not a lawyer, but it is possible he can say whatever he wants without consequences to public because OAI is not a public company.

Kind of, but there are limits. The investors still have LPs who aren’t going to be happy if things get messy. Things can still get really ugly even for a private company.

Most of the credit being throwing around isn't coming from traditional banking companies, mostly private credit being utilized.

Private credit isn't really unregulated.

If you're interested in learning more I believe Matt Stoller has written a few articles about the private credit markets.

The LPs are eyeing that $1 trillion IPO to dump on retail. They don't care what Sam says until then.

That ship has sailed. CNBC talks about the AI bubble and over-valuation every day. Retail investors won’t touch OpenAI. It’s increasingly looking like these LPs will be left holding the bag when the music stops.

I mean people talk shit about crypto for years, for good reasons, yet it keeps printing for some

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