OpenAI $1.4 TRILLION Valuation for Raising $30 Billion in Investment - IPO is Failing

Eli the Computer Guy (0:00)

Oh, sigh.

Are you sure you don't want to learn about MCP tools? MCP tools are really kind of cool. Wouldn't it be awesome to give your AI system its own toolbox, and you get to design all of the tools that your AI system has access to? Wouldn't that be like really cool?

Ah, but that's not why you come to YouTube. That's dope. Don't lie. Don't lie. Don't fucking white knight me, boy.

Boy, you better not fucking white knight down in the comment section. I've had enough of that shit. Anyways, let's talk about why you are really here. Coming from the information, OpenAI in early talks to raise 30 billion dollars before an IPO. So, so yeah, OpenAI's IPO is, to be clear, being delayed.

OpenAI is not dead. Its IPO is just being delayed.

Your dog is not dead and buried. It's simply on a farm in upstate New York. Yeah, yeah, there's a farm in upstate New York, and all old pets are sent up there to live out the rest of their lives, which is going to be hundreds and hundreds and hundreds of years. I swear, I swear it's true. So, I think this is kind of interesting looking at OpenAI. So, we've had the IP, so we had SpaceX IPO, $1.77 trillion, or yeah, like I say, the number, I literally say the number, and then my brain's like, that can't be right. And they're like, no, fuck, that's right. Anyways, SpaceX IPO for $1.77 trillion, currently, as of today, like at $2.01 trillion. We have Anthropic trying to IPO at $2 trillion, probably in November at this point in time, and Open AI is basically gasping for air as they figure out what to do, as they realize their books most likely do not look very good for IPOing. When I look at Open AI, I really do think about WeWork back in the day. So anybody that's followed me for any length of time that had been doing videos since 2009, I remember screaming about WeWork and talking about how stupid fucking WeWork was. And people told me I was a damn idiot. Don't you understand, right? Anyways, then the WeWork went to file for their IPO. The paperwork came out, and everybody saw what was in the paperwork. And basically, WeWork went from a quote-unquote, 45, I think it was like a $45 billion company at that period, point in time, to not doing their IPO, and literally going bankrupt within a year or two. And so what's really interesting right now is when you look at the idiocy of the SpaceX's IPO paperwork and just how wackadoodle that was. And then you start to hear the insanity coming out of the Anthropics IPO paperwork. So there's an IPO prospectus that's been created. Apparently, that's getting farmed out to investors, trying to get people interested in investing in Anthropic. And in it, like literally in the fucking IPO prospectus, it literally says Anthropic might be an existential threat to humanity.

What the? Anyways, like they talk about they're losing like 8 billion dollars. I mean, it's just they're losing a crap ton of money. They might destroy all of humanity. There's all this stuff. Apparently, it's in the IPO prospectus. And yet, there, to be clear, they're still moving ahead to try to get to 2 trillion dollar valuation in November. And so, if you've seen what SpaceX's IPO paperwork looked like, and you read what apparently Anthropic's IPO paperwork apparently looks like, and then you think OpenAI is putting off their IPO, you really have to ask the question of how fucking bad is that paperwork? If Anthropic can go to try to get 2 trillion dollar valuation, what's going on with OpenAI? And so basically, what it looks like is that the CFO of OpenAI is trying to clean up the paperwork, so they're trying to get enough runway to keep them alive. And so what's going on now is they're trying to push the runway out. So instead of IPOing, they're trying to continue to get money on the private market, basically private investors, and that is what they're talking about here. And so, yeah. So OpenAI is in early talks with investors to raise pre-IPOs, this is before the IPO round, and is targeting raising $30 billion. A cash-easy maker could seek a valuation of around $1.4 trillion. So again, we've been hearing $1.4 to $1.5 trillion. Previously, they were valued at $860-some-odd billion. Sam Altman had said they could not IPO at anything less than $1 trillion. So now, they're looking on the private market to be at $1.4 trillion. The round, largely driven by investor interest, comes before an expected IPO in 2027 OpenAI is seeking growth from selling to enterprise as its annualized revenue nears $70 billion in recent weeks, up around 70% from its revenue pace at the beginning of the third quarter. So what's interesting here too is again, they keep talking about this whole thing, annualized revenue. And again, when we talk about revenue, this is just total money coming in. This isn't profit. This isn't profit. I talked about this before with Twitter. Twitter should have been a fine company. Twitter was making $5 billion a year. The problem with Twitter is in order to earn $5 billion a year, they had to spend $5.5 billion a year.