Reuters: OpenAl offering private-equity firms a guaranteed return of 17.5%, and early access to models not yet public. How is this legal?

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    Posted by MysteriousSlice007

    24 Comments

    1. TomatoSpecialist6879 on

      A private company offers private-equity firms guarantee 17.5% return + early access to latest model of their product if aforementioned private-equity firms decides to invest in them

      So what’s the problem here again? Aside from the bs guarantee return which private-equity firms can sue them for if they fail to deliver, there’s nothing illegal here.

    2. Company losing 14B a year guaranteeing 17.5% returns?

      Where have i seen this before

    3. How can a company with no proof of revenue guarantee any ROI? Let alone as high as 17.5%

    4. ProjectStrange3331 on

      How are you connecting this to illegal behavior? What have they done other than offer incredible terms. I assume the contracts will lay out the terms of how that 17.5 is guaranteed/secured, but I’m not seeing anything illegal.

    5. They will do what they do best. Borrow money to cover what they owe with that 17.5%. At this point this resembles what MSTR is doing. Money is not real.

    6. admin_default on

      Nice.

      1. Pile on the debt.
      2. Get a bunch of users.
      3. File for bankruptcy.
      4. Sell off the assets at discount to other companies you control.

    7. No-Phrase-4692 on

      I know a good deal when I see one!

      ChatGPT, build me a bridge that I can buy from you

    8. IWasRightOnce on

      Nothing about this is unusual other than the 17.5% rate, and even that isn’t wildly higher than other companies have done.

      It is only “guaranteed” so far as the company succeeds.

    9. tuesday-next22 on

      They can’t raise money. If they could sell bonds with normal investment grade spreads they would. I’m not sure I would touch that 17.5% even if I could.

    10. Whenever I watched the show “American Greed”  the episodes where someone guaranteed a certain rate of return, it was a scam. 

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