Discussion

• @lefttailguy @lefttailguy on x

  Not sure why the guaranteed 18% return thing is controversial: If OpenAI's instantiation of Palantir can't return 18% a year, this whole AI thing is a bust, right? Though I'm unsure what the 18% guaranteed return is exactly referring to: is it a 18% return on the JV or 18% [image…

• @vinny_daniel0 Vinny Daniel on x

  The new risk free rate has been set at 17.5% by OpenAI

• @zerohedge @zerohedge on x

  How is this legal

• @jerrycap @jerrycap on x

  🚩

• @zephyr_z9 @zephyr_z9 on x

  Interesting, looks like Arab money has dried up

• @filmthepolicela @filmthepolicela on x

  Sure sounds like they're hustling up a Ponzi scheme.

• @tiktokinvestors @tiktokinvestors on x

  Not even bernie madoff could guarantee those returns

• @jbulltard1 @jbulltard1 on x

  Open ai with a 17.5% guaranteed return sounds a little fraudy [image]

• @stockmarketnerd @stockmarketnerd on x

  OpenAI offering PE firms 17.5% (!) guaranteed returns while they remain a cash incinerator years away from making any money. Feels highly aggressive at the very least. Feels ponzi-esque & like an inevitable disaster at the very most. 🤷‍♂️

• @longshorttrader @longshorttrader on x

  The three most dangerous words in finance: “Guaranteed minimum return”

• @ellliotttb @ellliotttb on x

  Lmao they're like a bucket shop real estate syndicator

• @highyieldharry @highyieldharry on x

  Damn this reeks of desperation. Also find it very interesting that Thoma Bravo passed.

• @xw33bttv Lex on x

  OAI might genuinely be going under... only Junkbond territory distressed assets offer such high yields.

• @tunguz Bojan Tunguz on x

  I should start a private equity firm. [image]

• @kimmonismus @kimmonismus on x

  OpenAI is offering private equity firms a standout 17.5% guaranteed return plus early access to new AI models to win enterprise partnerships. I digged a bit into this (deleted last post). This kind of incentive is unusual but strategic in a fast-moving, high-stakes market. [image…

• @dudewhoinvests @dudewhoinvests on x

  Did I read that right?? “17.5% GUARANTEED return.” [video]

• @onodacapital Hiroo Onoda on x

  17.5%?! Wtaf?

• @ns123abc Nik on x

  OAI started off capping investor returns at 100x to guaranteeing 17.5% now LOL What a deal maker Sam conman is

• @compound248 @compound248 on x

  OpenAI looks increasingly desperate. It is offering PE firms 17.5% preferred returns to buy into B2B joint ventures between the PE firm and OAI. The JVs would use OAI's engineers and most advanced models to customize deployments for the PE portfolio companies (and other [image]

• @dalibali2 @dalibali2 on x

  Conceptually this is a brilliant move. But how do you measure this?!

• @kimmonismus @kimmonismus on x

  How is this legal? OpenAI is offering PE firms guaranted returan 17.5% + early access to not released models. This smells like desperate need of money. Sorry to say it this blatantly. [image]

• @crampell Catherine Rampell on x

  normal private credit market stuff. no red flags

• @chatgpt21 Chris on x

  OpenAI is bypassing traditional sales and going straight to Private Equity buyout giants to secure billions in joint venture capital. To lock Anthropic out of the market, OpenAI is offering an unheard-of 17.5% guaranteed minimum return and exclusive early access to their newest […

• @_ram_ Ram Parameswaran on x

  “guaranteed returns”. Things that make you go hmm.

• @undrvalue @undrvalue on x

  Many are saying OpenAI's $10B private equity joint venture is giving a “desperate” feeling Vendor financing dressed up as venture capital. Guaranteed returns that smell like a Ponzi. A company burning $14B this year buying distribution it can't earn organically. I'd push back...

• @niubi Bill Bishop on x

  Bearish sign

• @astridwilde1 Astrid Wilde on x

  This is the kind of yield I would expect for a company months away from Chapter 11. Is anyone at OpenAI aware of what this signals?? Shocking tbh

• @maxclark Max Clark on x

  Sorry not sorry, if OpenAI is has to offer preferred returns to raise capital things are not good

• @wquist Will Quist on x

  Guaranteed returns from a company reliant on the capital markets so they can get market share is probably not the MOST bullish indicator

• @blackroomsec @blackroomsec on x

  The company that is operating at a multi BILLION dollar loss, is promising Madoff-level returns? 😂😂😂😂 They have a better chance at resurrecting Bernie from the dead.

• @curious_vii Christian on x

  If this ends up being the surreptitious way in which PE / pc gets bailed out, I am going to become the joker

• @hamptonism @hamptonism on x

  genuinly what the f*ck.

• @boringbiz_ @boringbiz_ on x

  OpenAI reportedly working with private equity firms such as TPG and Advent to raise preferred capital at a minimum return of 17.5% and provide early access to latest models Feels like an absolute win for PE if you can get a 18% IRR on a preferred equity piece and get the upside […

• @yote.gay @yote.gay on bluesky

  “Guaranteed return of 17.5%”  —  Lmao ENRON 2 here we come [embedded post]

• @edzitron.com Ed Zitron on bluesky

  Minimum return on...what?  What is this project?  What does it sell? [embedded post]

• r/BetterOffline r on reddit

  OpenAI sweetens private equity pitch amid enterprise turf war with Anthropic: Offering guaranteed minimum return of 17.5%.  (Nope, no red flags there, just normal equity stuff!)

• r/finance r on reddit

  OpenAI offers private equity guaranteed 17.5% returns

• @musharbash_b Basel Musharbash on x

  @edzitron Preferred shares (which is what OpenAI is offering) pay interest like bonds, in addition to dividends.  In other words, OpenAI is looking for loans from PE, but trying to get lower interest rates by combining those loans with (potentially appreciating) equity interests …