Least shocking news ever. This has clearly been in the works for a while. Not that it’ll matter at this point, given that the notion of OpenAI making any profit is kind of a pipe dream right now.
This is mostly just a play to get investors to sink more money into covering their absolutely insane cash burn for another year.
They might not make a profit, but Altman will be able to extract a lot of wealth by using 7% of a billions of dollars valuation. Even if he doesn’t sell any he can use it as collateral against loans to effectively turn them into cash.
Yes, with the money he’d earn off the money he borrowed. This is why taxing unrealized gains is a national conversation. “It’s not money until you sell it” but you can borrow it like it’s money and make actual other money with it likes it’s money.
