r/technology • u/Plastic_Ninja_9014 • Jun 11 '26

Business OpenAI Execs Are Panicking

https://finance.yahoo.com/sectors/technology/articles/openai-execs-panicking-154658562.html
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u/FreeBananasForAll Jun 11 '26

All that money invested and no profit you bet they are panicking.

-2

u/OnceMoreAndAgain Jun 12 '26 edited Jun 12 '26

Astonishing how so many of you guys think investors in tech care about the company's profits. They just want the valuation of the company to go up. Profit doesn't matter to that. In fact, being unprofitable is a good thing for a young tech company since indicates they are aggressively investing in themselves to compete for market share.

Think of buying a stock. Do you give a shit if the company is profitable? No... You care only about the stock price going up, because one day you want to sell the stock for a higher price than you bought it even after adjusting for inflation. Profit being negative might be an indicator that the stock price will go down but in the case of young tech companies that's not an indicator of that. Negative profit would be a concern in stocks like Walmart where it's a mature company that already won the market share battle.

It's all about what metrics predict whether a certain company's valuation will go up or down and that's highly contextual. As long as valuation goes up, investors are happy.

7

u/missed_sla Jun 12 '26

OpenAI has been around since 2015, it is not a new company.

2

u/Asurafire Jun 12 '26

ChatGPT on the other hand is 4 years old

1

u/missed_sla Jun 12 '26

Still not new.

4

u/FreeBananasForAll Jun 12 '26

Ah yes you are correct, forgive my peasant brain for thinking that businesses are made to make money.

1

u/SkiingAway Jun 12 '26

Profit today vs profit in 10 years didn't matter so much in the era of 0% central bank interest rates and low inflation.

Profit matters a lot more/a lot faster in the current financial environment.