Fordel StudiosOpenAI’s investment into Thrive Holdings is its latest circular deal
What Happened
Analysts will be watching to see if Thrive-owned firms actually succeed in building long-term profitable businesses using OpenAI’s tech, or if the result is really just pumped up valuations based on speculative market potential.
Our Take
OpenAI funds Thrive, which owns companies building on OpenAI's models. OpenAI's capital helps them use OpenAI's tech, valuations pump up, investment looks brilliant. It's a shell game.
The question nobody asks: are these defensible products or just API wrappers that collapse when pricing changes? Almost certainly the latter. Don't confuse 'VC momentum' with 'real business.' Most of these fail the day OpenAI releases a cheaper model.
What To Do
Skip anything claiming to be an 'AI business' if it's fundamentally just reselling someone else's API with markup.
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