eicker@lemmy.world to Technology@lemmy.worldEnglish · 7 days agoAI Bubble Teetering on the Brink as OpenAI Admits to Massive Financial Failure: A $20 billion setback.futurism.comexternal-linkmessage-square327linkfedilinkarrow-up1253arrow-down17
arrow-up1246arrow-down1external-linkAI Bubble Teetering on the Brink as OpenAI Admits to Massive Financial Failure: A $20 billion setback.futurism.comeicker@lemmy.world to Technology@lemmy.worldEnglish · 7 days agomessage-square327linkfedilink
minus-squareskibidi@lemmy.worldlinkfedilinkEnglisharrow-up3·6 days ago50B is annualized revenue, accrued revenue will be almost certainly be quite a bit lower this year. Tech companies love reporting ARR because it is always bigger than GAAP revenue (if the business is growing at all).
minus-squarelikebudda@reddthat.comlinkfedilinkEnglisharrow-up3·6 days agoIt’s not annualized in the traditional sense. They take their highest revenue day and multiply it by 365.
minus-squareeestileib@sh.itjust.workslinkfedilinkEnglisharrow-up1·6 days agoWe don’t even know their calculation. It’s just a number they present without context.
minus-squareKaiFeng@lemmy.worldlinkfedilinkEnglisharrow-up1·6 days agoThat… Doesn’t make sense does it? Like apart from fraud what’s the point of doing it like that?
minus-squarephutatorius@lemmy.ziplinkfedilinkEnglisharrow-up1·3 days agoThey need to pull a big number from where the sun don’t shine.
minus-squareCrimeIsLegalNow@ani.sociallinkfedilinkEnglisharrow-up2·6 days agoOh, it’s absolutely a fraud meant to deceive investors. Just not legally speaking.
minus-squareredballooon@lemmy.worldlinkfedilinkEnglisharrow-up1·6 days agoBut the $70b number was published by an investor, and OpenAIs crime was to not disagree publicly. Makes me wonder who is frauding whom. I won’t pretend to understand this news.
50B is annualized revenue, accrued revenue will be almost certainly be quite a bit lower this year.
Tech companies love reporting ARR because it is always bigger than GAAP revenue (if the business is growing at all).
It’s not annualized in the traditional sense. They take their highest revenue day and multiply it by 365.
We don’t even know their calculation. It’s just a number they present without context.
That… Doesn’t make sense does it? Like apart from fraud what’s the point of doing it like that?
They need to pull a big number from where the sun don’t shine.
Oh, it’s absolutely a fraud meant to deceive investors.
Just not legally speaking.
But the $70b number was published by an investor, and OpenAIs crime was to not disagree publicly. Makes me wonder who is frauding whom.
I won’t pretend to understand this news.