New York Post<\/a> reports.<\/p>\nHess in the exchange was notified that his bid on a house in the San Francisco neighbourhood of Noe Valley didn\u2019t go through. He seemed shocked.<\/p>\n
\u201cWe asked $400k over asking??\u201d he sent, to which the realtor said the buyer paid in equity from OpenAI, one of the world\u2019s most valuable AI start-ups.<\/p>\n
\u201cThat\u2019s not even money,\u201d Hess replied.<\/p>\n
\u201cThe sellers want exposure to AGI,\u201d or artificial general intelligence, the realtor, identified only as Lily, said.<\/p>\n
It\u2019s unclear if the exchange was real, and The California Post reached out to Hess for comment. A couple social media users concluded without evidence it was parody \u2014 but they acknowledged the same exact situation exists in real life.<\/p>\n
\u201cYou joke but this is exactly what happened to me,\u201d wrote venture capitalist Ash Arora with a crying-face emoji.<\/p>\n
![\"\"\/](\"data:image\/svg+xml,%3Csvg)
<\/p>\n
A man claims his offer on a home got beaten by someone who purchased the property with shares in AI. Picture: X<\/p>\n
The viral moment illustrates Silicon Valley\u2019s massive economic windfall from the AI industry that has also unleashed a real estate boom in the increasingly unaffordable Bay Area. Many in the tech industry are stock-rich but cash poor, but the value of their stocks has opened opportunities.<\/p>\n
Some listings have even openly stated they accept AI stocks as a method of payment, as many are eager to cash in on mind-boggling numbers from two AI start-ups.<\/p>\n
OpenAI was valued at $852 billion as of March \u2014 an astronomical increase compared to three years prior, when its valuation was at about $29 billion. Meanwhile, Anthropic\u2019s valuation recently reached a whopping $965 billion. Potential IPOs from the two could drive even more value.<\/p>\n
Many home sellers are taking the bet that equity in these AI companies will only increase in value with time.<\/p>\n
\u201cThey trust that this company is a good company and that this company is a company that can deliver based on everything they\u2019ve heard about it,\u201d Ahmed Banafa, a tech expert at San Jose State University, told ABC7.<\/p>\n
But there can also be risks, he noted, given stocks can fall in value.<\/p>\n
According to Legal Clarity, any transactions with stocks must require a purchase agreement \u201cthat spells out the exact securities, the number of shares, and a specific date and time for the valuation.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Open AI is one fo the leading tech companies driving the AI boom. Picture: Supplied Silicon Valley\u2019s artificial…\n","protected":false},"author":2,"featured_media":781934,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[256,254,255,64,63,105],"class_list":["post-781933","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-au","tag-australia","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/781933","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=781933"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/781933\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/781934"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=781933"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=781933"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=781933"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}