[deisteve]

$157B marketcap means they need to 20x their current revenue of roughly 400 million dollars by next year...

But the revenue has flatlined and you can't raise your existing users cost by 20x...

It truly is a mystery as to how anybody throwing other peoples money hopes to get it back from OpenAI

[ToValueFunfetti]

They made 300 million revenue last month, apparently up 17x from last year[1]. To get a P/E ratio of 20, assuming (falsely) that their spending holds constant, they'd need ~4x more revenue

[1]https://www.nbcnews.com/business/business-news/openai-closes...

[KoolKat23]

For a P/E ratio of 20 they'd need to generate earnings (not revenue) of $7.85 billion, earnings are revenue less all costs.

[onlyrealcuzzo]

> The start-up expects about $3.7 billion in sales this year

Where do you get $400M and flatline?

[muzani]

"That meant OpenAI could provide a return for investors, but those profits were limited. OpenAI has also long been in talks to restructure itself as a for-profit company. But that is not expected to happen until sometime next year..."

https://tvtropes.org/pmwiki/pmwiki.php/Main/IAmNotLeftHanded

[qeternity]

I'm not justifying anything here but I think their revenues are expected to triple next year...now that doesn't mean they will of course. But why do you say they've flatlined?

[NickNaraghi]

> But the revenue has flatlined and you can't raise your existing users cost by 20x...

Why not? They’re already shopping a 2k/mo subscription option

[adastra22]

Who would pay 2k/mo? For what?

That’s someone’s rent.