#AI #GenerativeAI #OpenAI #AIBubble #AIHype: "At a valuation of $157bn, OpenAI investors are paying about 13 times the company’s estimated $12bn in 2025 revenue. That might seem modest: fellow AI icon Nvidia trades at 18 times, according to LSEG data. Then again, Nvidia is lavishly profitable, while OpenAI is burning $5bn a year. True, losses are common in tech. Back in 2017, Tesla had $12bn of revenue and $2bn of losses. The carmaker’s market capitalisation, though, was a more modest $50bn.
For now, OpenAI is less of a company, and more of an idea. Granted, it’s an exciting one. If Altman’s models scale Olympian heights, so might his company’s value, as Tesla’s did. But investors making that call today must surely be powered more by instinct than intelligence."
https://www.ft.com/content/55fac2af-8eac-4214-ae15-f5ce349c1a9e