- existing models are profitable if cutoff future training and focused on inference
- debt is senior to equity
- if my life depended on one company not going bankrupt over the next decade I’d pick OAI over Citibank
- banks use revolving credit as a break even or loss leader for higher fee business
- high fixed cost businesses use debt and equity to scale
- lead investors would very rarely pay down the debt of an investment, that’s not the backstop
- unlikely for revolving credit, but a convertible structure could mitigate any perceived asymmetric downside
- existing models are profitable if cutoff future training and focused on inference
- debt is senior to equity
- if my life depended on one company not going bankrupt over the next decade I’d pick OAI over Citibank
- banks use revolving credit as a break even or loss leader for higher fee business
- high fixed cost businesses use debt and equity to scale
- lead investors would very rarely pay down the debt of an investment, that’s not the backstop
- unlikely for revolving credit, but a convertible structure could mitigate any perceived asymmetric downside