eicker@lemmy.world to Technology@lemmy.worldEnglish · 2 days agoAI Bubble Teetering on the Brink as OpenAI Admits to Massive Financial Failure: A $20 billion setback.futurism.comexternal-linkmessage-square346fedilinkarrow-up137
arrow-up137external-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 · 2 days agomessage-square346fedilink
minus-squareskibidi@lemmy.worldlinkfedilinkEnglisharrow-up13·1 day 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-up11·1 day agoIt’s not annualized in the traditional sense. They take their highest revenue day and multiply it by 365.
minus-squareKaiFeng@lemmy.worldlinkfedilinkEnglisharrow-up6·1 day agoThat… Doesn’t make sense does it? Like apart from fraud what’s the point of doing it like that?
minus-squareCrimeIsLegalNow@ani.sociallinkfedilinkEnglisharrow-up4·1 day agoOh, it’s absolutely a fraud meant to deceive investors. Just not legally speaking.
minus-squareredballooon@lemmy.worldlinkfedilinkEnglisharrow-up1·edit-215 hours 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.
minus-squareeestileib@sh.itjust.workslinkfedilinkEnglisharrow-up3·1 day agoWe don’t even know their calculation. It’s just a number they present without context.
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.
That… Doesn’t make sense does it? Like apart from fraud what’s the point of doing it like that?
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.
We don’t even know their calculation. It’s just a number they present without context.