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E198Oct 3, 2024

In conversation with Mark Cuban

Takes
7
Companies
5
Private calls · not scored
Who weighed in
2 bullish1 bearish4 neutral
JasonJasonCommentary

Jason argues OpenAI's $150B+ valuation is stretched given it loses $5B/year on $3.5B in revenue, implying a ~40-50x price-to-sales multiple that is hard to justify given competition.

They're losing $5 billion a year, they're making $3.5 billion, they put this thing at $150 billion, it's 40 times, 50 times revenue. To fill in that valuation on a price-to-sales basis, you know, it's kind of crazy.
GMark CubanCommentary

Mark Cuban argues OpenAI's aggressive investor restrictions and founder exodus reflect fear and poor character, and that Google (Gemini), Meta (open source), and others are credible competitors meaning OpenAI is far from a guaranteed winner.

There is no, you know, there's nothing that says that OpenAI is going to win, nothing at all. And so I don't feel bad about what they're doing. And to me, it tells me they're more scared than anything by trying to restrict what people are
SacksSacksCommentary

Sacks is skeptical of OpenAI, highlighting its shift from nonprofit to aggressive for-profit, restricting investors from backing competitors, and Sam Altman taking compensation after saying he wouldn't — suggesting the company is operating on false pretenses.

They originally started that enterprise with $50 million or so from Elon. It was a nonprofit. Then they became a for-profit. Now there's a report saying that they're telling investors in this round that they can't invest in any other AI
MetaMETA+13.3% over 1yr 9mo
GMark CubanCommentary

Mark Cuban highlights Meta's open-source AI strategy as getting 'better and better,' framing it as a strong competitive threat to OpenAI with no guaranteed winner in the foundational model race.

Meta as open source and what they're doing is getting better and better. There is no, you know, there's nothing that says that OpenAI is going to win, nothing at all.
GoogleGOOGL+115.4% over 1yr 9mo
GMark CubanCommentary

Mark Cuban praises Google's Gemini 1.5 and Notebook LM as 'insanely good' AI products, positioning Google as a credible and strong competitor to OpenAI in the foundational model race.

Gemini with Google, I've done a lot of stuff with them. Notebook is insanely good. Gemini 1.5 is insanely good.
GMark CubanBullish

Mark Cuban invested in Groq alongside Chamath, viewing it as a compelling 'picks and shovels' AI infrastructure play.

So now I've kind of slowed down. I invested in Groq, right, with Chamath, right? Chamath is like, yeah, let's go, right? And he can tell you all the reasons.
GMark CubanBullish

Mark Cuban is deeply invested in CostPlusDrugs.com, which he co-founded, describing a hockey-stick growth trajectory as it disrupts pharmacy benefit managers with radical price transparency.

Our path is hockey stick, double, triple hockey stick. And so we're taking business from them, and I think the traditional legacy companies in insurance—