""This is continuing on this path of crazy financing that defies the laws of physics. The truth is that 27% of nothing is still nothing,""
""As for the $250 billion number, this is venture capital math at its most absurd. OpenAI is burning billions quarterly while promising to spend a quarter trillion over multiple years," Prywata said. "We know the money won't come from revenue, let alone profit. It's coming from the investors betting that someone else will pay even more later. Classic.""
""Microsoft held all the cards in terms of the negotiation," he said. "This is all wins for Microsoft.""
Microsoft's ownership stake in OpenAI falls from 32.5% to 27% as part of a recapitalization and formation of a public benefit corporation. The revised agreement values Microsoft's new OpenAI shares at $135 billion while OpenAI reported a $7.8 billion loss in the first half of 2025. The deal requires OpenAI to purchase an incremental $250 billion of Azure services over multiple years. Observers characterize the valuation and service-commitment math as detached from fundamentals and unlikely to be funded by revenue given current cash burn. The negotiation outcomes overwhelmingly favor Microsoft, with AGI control remaining the sole unresolved point.
Read at Computerworld
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