00:00What does this mean for the broader ecosystem?
00:02$1.2 trillion is huge, and we know that Anthropic is also vying to go public.
00:07Yeah, so, I mean, it's been a big race in the world of AI to see who can get the
00:11biggest valuation.
00:12SpaceX had a really high bar earlier this year when they IPO'd in the biggest IPO ever.
00:17OpenAI, it was unclear when exactly they would IPO.
00:20They had filed for IPO in June, but over the weekend, with all these existential fears about AI bubbling up,
00:26Sam Altman, the CEO of OpenAI, said that he saw it as an inopportune time or ill-advised time to
00:33actually IPO,
00:34and that they probably wouldn't IPO until next year.
00:36And so the fact that investors have approached OpenAI about this potential funding at valuing them at more than $1
00:42.2 trillion,
00:44it shows that, A, there's capital available for them to continue investing in their models
00:50and continue doing what they're doing, even in the private markets.
00:53And it shows that investors that already back them are willing to be a little bit more patient with their
00:58money.
00:58And so that probably means if and when they do IPO,
01:01it would likely be at a much higher valuation than what they're going to get in private markets.
01:06Otherwise, they would go public now.
01:08Michelle, just a few months ago, wasn't OpenAI targeting a $1 trillion valuation on the IPS?
01:12And now we're at $1.2 trillion.
01:14That's $200 billion.
01:15I cover emerging market fixed income.
01:17That's the size of many economies in my sector, in my space.
01:21What does this mean for DeepSeek?
01:22Isn't DeepSeek coming to the market?
01:24I mean, there was talk about a $70 billion valuation for them.
01:26Does this bring them all the way up to like $90 billion, almost a trillion?
01:29What are your thoughts?
01:30I mean, all we know at this point is that it's clear that the theme is everything just keeps getting
01:35higher.
01:36A lot of these numbers defy gravity.
01:38And, you know, everyone's trying to one-up each other.
01:41Even Anthropic, which is expected to IPO next month, is allegedly going to be valued at $2 trillion in its
01:48IPO.
01:48So what happens to DeepSeek and what valuation they can fetch is a big question.
01:54You know, it's not the case that numbers always go up, as we know from past crises.
02:01But it seems like at this point investors are banking on the fact that they will continue to go up
02:05unless something really bad happens, you know, like society being wiped out.
02:11But then, of course, none of this will matter.
02:14None of this will matter.
02:15$1.2 trillion.
02:16It sounds staggering to Damian, to me, I'm sure to many others.
02:19Is it staggering or is it cheap maybe in hindsight?
02:22Like, how are investors valuing it based on your reporting?
02:25So $1.2 trillion is above the valuation that OpenAI got in its most recent funding round in March.
02:32In March, the post-money valuation was around $850 billion.
02:37OpenAI has released some new models over the last couple weeks.
02:41And it has said that its revenue has grown a lot based off of that.
02:45So part of what I think is happening here is they're looking to capitalize on that revenue growth to get
02:51money at a bigger number.
02:52The six biggest U.S. banks had a great first half.
02:56I mean, they made $100 million in revenue, right?
02:58I mean, talk to us about, you know, all this issuance, all these IPOs, all these secondaries, all these different
03:03rounds of fundraising.
03:04Is this just lining the bankers' coffers here?
03:06I mean, like, talk to us about what this means for the financial sector.
03:09I mean, are you seeing this, you know, basically perpetuate more deal flow?
03:13Is this something that we should be concerned about, or is this just a good thing?
03:16It's a good day to be a bank owner?
03:18It's definitely a good day to be a financing bank if you're involved in any of these IPOs or financings,
03:24because, as you said, you know, they're making a ton in fees from this.
03:29You do have to wonder at what point that maybe keeps people from being able to recognize, you know,
03:35any potential risks when putting all of this money to work.
03:38But one other interesting thing about even the financings is, you know, OpenAI,
03:43the thought is if they do get this money in this most recent round or this upcoming round,
03:50they'll be able to use some of it to do more M&A,
03:52which is another way that banks are able to generate fees.
03:56This is wild that banks,ær
03:56the best $100 to $100 to $100 to $100.
03:56So, for the growers that they've made have been $600 to $300,
03:57and then it's the amount of money that they're
Comments