Do you recall what “people familiar with finance” did with CDOs and mortgage-backed securities during the financial crisis? That didn’t work out so well either, despite all parties being aware of the risks.
It bears repeating my original question: if the risks are so minor, why is OpenAI simply not issuing bonds and buying AMD stock with the proceeds?
I didn’t claim the risks are minor, I am just arguing against the notion of it being “printing money”, as if they have the powers of the Treasury.
> Do you recall what “people familiar with finance” did with CDOs and mortgage-backed securities during the financial crisis? That didn’t work out so well either, despite all parties being aware of the risks.
There was straight up fraud involved in the underwriting for the mortgages where verification (or rather underwriting itself) was not being done.
This deal is a transparent bet on an outcome with no deceived party.
It bears repeating my original question: if the risks are so minor, why is OpenAI simply not issuing bonds and buying AMD stock with the proceeds?