OpenAI may have raised one of the largest private investments ever this week, but one billionaire said he’s not interested in doing business with the startup.
The billionaire said he could have invested in the AI startup behind ChatGPT during its latest funding round but decided not to
OpenAI may have raised one of the largest private investments ever this week, but one billionaire said he’s not interested in doing business with the startup.
During an appearance on the “All-In” podcast, Mark Cuban said that while he could’ve contributed to the artificial intelligence startup’s latest $6.6 billion funding round, he didn’t. That funding round boosted OpenAI’s valuation to $157 billion.
“I wouldn’t do business with people like that,” Cuban said, referring to reports that OpenAI is considering making the transition to a for-profit structure and has asked investors not to invest in its competitors. “There are people who just look for what they think is the next big thing. I certainly could’ve given them money, didn’t give them money.” He added that one of his funds has previously given the startup money.
Of OpenAI’s reported business decisions, Cuban said, “To me, that’s just wrong.” He added, “And that catches up to you. When people f–ck over investors and whatever, it always comes back. Karma’s a b-tch in business, too.”
OpenAI is considering restructuring its nonprofit status to attract investors, the Financial Times previously reported. And while the startup is considering a for-profit structure, CEO Sam Altman has reportedly told employees he doesn’t plan to get a “giant equity stake” in the company. In a meeting, both Altman and Sarah Friar, OpenAI’s chief financial officer, told employees the company’s investors are concerned over Altman not having equity, CNBC reported.
Altman reportedly called a report that he would receive a 7% stake in the company “ludicrous” and said it was too high, according to The Information. If Altman received a 7% stake, it would be worth almost $11 billion of equity, based on OpenAI’s $157 billion valuation.
Despite the massive raise and interest in the startup, Cuban said “nothing” shows OpenAI will win the AI race.
The billionaire, who said he’s “done a lot of stuff with” Google $GOOGL (GOOGL), called its Gemini 1.5 model “insanely good.” He also said Meta $META’s (META) focus on open-source AI models “is getting better and better.”
About OpenAI, he said, “I don’t feel bad about what they’re doing, and to me, it tells me they’re more scared than anything by trying to restrict what people are doing.”
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