I don't understand how OpenAI can guarantee 17.5% returns

bankless.com

7 pointsericlmtn4 comments

"Guarantee" is not an appropriate word here. In fact, such a high rate indicates that it's a very risky investment ("junk bonds" pay ~7.5%).

article does say a 17.5% minimum, which makes me wonder

I'm guessing these are convertible so the lenders can take either 17.5% interest or convert to stock, whichever is worth more.

Are private equity firms really buying this? Especially with all the cash flow issues going around?