Travis Hoium

I don't think they have all the cash yet.

But this is companies like Amazon, SoftBank.

Microsoft is apparently back in the game, investing in OpenAI.

But Lou, I'm curious about a couple of things.

This, I think, is definitely the biggest raise in Silicon Valley, maybe even the biggest single raise ever for a company, and they're not really close to being profitable.

Does this bring an IPO closer?

The ARK funds are investing, so now retail is coming in as well, through a backdoor.

What are your thoughts on that?

I know it's a big question, but it just seems like they're setting up for this IPO, but yet they still are burning through tons and tons of cash.

That's so crazy, but that is true.

Yeah.

Rachel, what did you think when you saw this?

Like Lou said, some of this we kind of knew was coming, and we knew they needed a bunch of cash, because their projections are just in insane amounts of cash burn over the next few years.

But it does still seem notable that some of the biggest companies in the world are just throwing tons of money at them.

That does seem like a challenge, Lou, that they are in this position.

We've seen this with companies.

Back in my history, I remember SunEdison was one of the hottest stocks on the market for a little while, but their entire business model was predicated on raising the next round, which was theoretically going to pay off.

That worked literally until it didn't.

And OpenAI seems to be in the same situation today, where if AGI, you keep moving the goalposts further and further out, AGI is this panacea of cash flow, but we're going to need a ton of cash to get there.

If the market rejects that, and you go from being an $800 billion company like they are today, and let's say that IPO price is at $400 billion, still one of the biggest companies in the world, that's really problematic.