Bahnsen Questions OpenAI's $1.25 Trillion Valuation on Fox Business

Financial analyst David Bahnsen told Taylor Riggs on Fox Business that OpenAI's $1.25 trillion valuation is far too high for a company that is still losing money. He spoke in a short Fox Business clip about OpenAI scaling back its fundraising target.

Snapshot

In a brief Fox Business segment on OpenAI shrinking its fundraising goal, Bahnsen argues the company's valuation is badly out of line with its finances. He points to ongoing losses, heavy computing costs and an expected wait of nearly a decade for positive free cash flow, and sees the reduced raise as a signal for caution.

Key points

• Fundraising: The segment centers on OpenAI cutting back the amount it aims to raise.
• Valuation: Bahnsen called the artificial intelligence company's $1.25 trillion price tag "insanely high."
• Costs: He said the firm keeps losing money and pointed to its massive computing costs.
• Cash flow: Bahnsen noted that OpenAI is not expected to produce positive free cash flow for close to a decade.

Quick take

In Bahnsen's view, a company with that outlook does not support a valuation of that size, and the scaled-back fundraising is a reason for caution. The Fox Business clip runs under a minute.

Read the full story at Fox Business.