Usually it is a proportion. 100k for 10% of the company is a 1M valuation

lionkor · 2024-06-11T21:04:16

Yes but that does not explain why better text prediction is worth $6B to these people

JumpCrisscross · 2024-06-11T22:12:04

> that does not explain why better text prediction is worth $6B to these people

Same reason Cohere has a weirdly-high valuation relative to revenue: it's a national champion.

underyx · 2024-06-11T21:05:41

Any source for the 10% number?

esafak · 2024-06-11T21:28:10

edit: If you're that curious just call Hemant up and ask him yourself?

underyx · 2024-06-11T21:32:42

This does not mention Mistral at all. Are all replies to me in this thread from LLM agents?

swyx · 2024-06-11T22:24:01

sodality2 · 2024-06-11T21:10:32

That sounds like an example to demonstrate the concept

underyx · 2024-06-11T21:25:25

Oh, well that didn’t answer my original question at all then.

zandroid · 2024-06-11T21:18:05

Any source for that is an example?

sodality2 · 2024-06-11T21:27:43

If someone pays 100k for 10%, the valuation is 100k * 10 = 1M. There’s not really a source for that, that’s just how market valuations work