this post was submitted on 19 Jan 2025
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OpenAI, valued at $157 billion, isn't profitable. Should that be normal? (www.salon.com)
submitted 1 week ago by jeffw@lemmy.world to c/technology@lemmy.world
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[โ€“] brlemworld@lemmy.world 1 points 1 week ago (1 children)

They still aren't required to go through SEC regulations and can make up some PR nonsense evaluation.

[โ€“] sugar_in_your_tea@sh.itjust.works 2 points 1 week ago

They can say what they want, but investors won't invest if the ask is too high. These valuations are based on purchase of a given percent of shares, so you take the amount raised and divide by the percent sold and you get a valuation (a little more complicated than that, but that's the gist).