I don't understand how OpenAI can guarantee 17.5% returns
7 points by ericlmtn 15 hours ago | 4 comments
  • ericlmtn 15 hours ago |
    Are private equity firms really buying this? Especially with all the cash flow issues going around?
  • wmf 15 hours ago |
    "Guarantee" is not an appropriate word here. In fact, such a high rate indicates that it's a very risky investment ("junk bonds" pay ~7.5%).
    • ericlmtn 12 hours ago |
      article does say a 17.5% minimum, which makes me wonder
      • wmf 11 hours ago |
        I'm guessing these are convertible so the lenders can take either 17.5% interest or convert to stock, whichever is worth more.