00:00The days of unicorns are over. Now it's the era of the Hectacorn. That's the name for a company deemed to be worth $100 billion or more.
00:09And this year, some of those Hectacorns might go public, and it could be a major flashpoint for the AI industry and for fears of a bubble.
00:17The top two contenders are OpenAI, maker of ChatGBT, and its closest rival, Anthropic, which makes the chatbot clawed.
00:24Neither company has confirmed an IPO yet, but both firms have taken steps to make it happen.
00:29Now here's the thing, the companies don't really want to do this. It's annoying being public.
00:34Every three months, you have to share huge amounts of data with Wall Street, such as revenues, expenses, profit margins, and you have to be upfront about your risks and problems.
00:44So all powerful CEOs like Sam Altman are suddenly less free to do what they want.
00:49Am I excited to be a public company CEO? 0%. Am I excited for OpenAI to be a public company?
00:57In some ways, I am. And in some ways, I think it'll be really annoying.
01:02So why go public, then? Well, these companies need money, and they need it fast.
01:07OpenAI has committed to more than a trillion dollars in infrastructure for its goal of creating superintelligence.
01:13That's money the company simply doesn't have, and so heading to the public markets is one way to get some of it.
01:20The company that goes first, be it OpenAI or Anthropic, might gain an advantage, as investors are hungry to get a piece of new AI stocks.
01:27But IPO-ing can also expose their weaknesses. CallWeave, an AI data center company that went public last year, saw its stock plummet after it had to reveal that it was seeing big delays in building its facilities.
01:39And the overall health of the economy is at stake, too. It's being propped up by the hope that AI hype is real and the investments, huge investments, will pay off.
01:48When the dot-com bubble burst in the early 2000s, it was in part due to grossly overvalued companies hitting the markets and exposing their hopeless balance sheets.
01:59The AIPOs will give investors the first real look at whether the hectacons are really worth the money.
02:05The AIPOs will give a special effects of the economy.
02:25The AIPOs will show up by the hands of the company that will show up by the rightinge of the company.
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