Oh, look! # OpenAI is now worth a laughable $852B because apparently, # AI that generates cat
openai startup
| Source: Mastodon | Original article
OpenAI’s market value has been pegged at a staggering $852 billion after a secondary‑share sale that pushed the post‑money figure to a level usually reserved for the world’s biggest tech conglomerates. The valuation, announced in a filing earlier this month, sparked a wave of sarcasm on social media, with memes proclaiming that the company’s “next big thing” is an AI that churns out cat pictures for profit.
The uproar is more than internet banter. As we reported on 15 April, investors are already “scrutinising” the deal, a euphemism for questioning whether the price tag reflects sustainable revenue or merely hype around OpenAI’s rapid product rollout. The cat‑meme chatter underscores a broader concern: OpenAI’s cash burn remains massive, with internal estimates suggesting it spends close to $1 million a day on compute‑intensive projects such as the Sora video model and the newly teased GPT‑5.4‑Cyber.
Why it matters is twofold. First, the valuation sets a benchmark for the nascent generative‑AI market, influencing how venture capital and public investors price the next wave of startups. Second, the public perception of OpenAI as a “cat‑meme factory” could erode confidence among enterprise customers who expect robust, enterprise‑grade solutions rather than novelty apps.
Looking ahead, analysts will watch three developments. The company’s planned IPO, tentatively slated for later this year, will test whether institutional investors can stomach the lofty multiple. A forthcoming earnings release should reveal whether the cat‑meme hype translates into measurable user growth or remains a marketing gimmick. Finally, regulatory bodies in the EU and the US are expected to tighten oversight of foundation models, a move that could force OpenAI to justify its spending and governance practices before the valuation can be defended.
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