What Multiple Are You Willing To Pay for Gen AI?
OpenAI is negotiating a capital raise at a $100 billion-plus valuation. This for a company that will generate Revenue between $3-4 billion in CY’24. Nvidia, Microsoft and Apple will participate in the deal. If true Agentic AI – meaning AI capable of taking on large, complex tasks – was just around the corner (2025), I would get the hype. However, my sense is that sophisticated Agentic AI is a few years off – at least.
AGI? AGI is an entirely different ball of wax. We will not see AGI for another 20 years in my view.
What multiple do you want to pay for the above? If OpenAI was to execute its round tomorrow, my expectation is that the following round would be a down round given the state of the economy.