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J.P. Morgan's OpenAI loan is strange

CommunityNews

CommunityNews

J.P. Morgan's OpenAI loan is strange

In October, OpenAI secured a 4 billion dollar revolving credit facility from J.P. Morgan and several other banks. I was surprised when I heard this because OpenAI is a young company with no earnings. Shouldn’t all their capital come from investors? Let’s run some numbers.

From first principles

Let’s

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