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If it was a good valuation scheme, then Nvidia giving them $100 million at a $2 billion valuation would mean that Nvidia thinks the company is worth $2 billion. But if Mistral uses that money to buy GPUs that Nvidia sells with 75% profit margin, the deal is profitable for Nvidia even if they believe the company is worth only $0.5 billion (since they effectively get 75% of the investment back). And if this deal fuels the wider LLM hype and leads other companies to spend just $50 million more at Nvidia, this investment is profitable for Nvidia even if Mistral had negative value.



With convertible debt and many of these rounds investors get the first money out, so the first 450m would go to the investors.




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