// capital structure

Source: Marcus on AI

Masayoshi Son's strategy of using OpenAI equity to buy more OpenAI equity mirrors classic bubble mechanics—not because the underlying technology is worthless, but because valuation increasingly depends on continued capital inflows rather than revenue generation. The generative AI industry's ability to sustain $200B+ valuations depends entirely on whether large language models generate proportional returns, yet most players remain pre-profitable on massive compute costs. Current funding rounds function less like traditional venture capital and more like musical chairs with institutional money.