I’m so confused. I thought this was illegal?
The OpenAI non-profit will continue to exist and own a minority stake in the for-profit company
Wait what? Are they restructuring to a for-profit or not? They already have a separate for-profit company.
OpenAI the non-profit owned OpenAI the company since the company was created. The non-profit is simply reducing its stake/share of the company and giving it to investors and/or Altman
Ah, that makes more sense, thanks.
I hate him so much bros
When you organize a nonprofit, you dedicate it to the public benefit. it’s not supposed to ever have owners, everything it does it supposed to be for me and you. as far as I’m concerned, this is a multi billion dollar larceny against the general public and we really need better laws that preserve our nonprofit institutions. Just even trying to plan this out is a crime against humanity
To implement something like this, you would need a radical change in judicial and criminal systems.
Something along the lines of any white collar crime worth more than say 10 annual local median salaries, would require a rehabilitation program (if convicted) that would start with full asset seizure (absolutely everything) and a minimum of 10 years real community service (live-in junior janitor at an Alzheimer’s outpatient institution with minimum wage and limited access to internet and smartphones). The community service could easily be extended to 20, 30 or 40 years depending the on the severity of the crime.
You would also need to get rid of various “get out of jail free” laws and make it easy to organized criminals and send them to rehabilitation programs.
Least shocking news ever. This has clearly been in the works for a while. Not that it’ll matter at this point, given that the notion of OpenAI making any profit is kind of a pipe dream right now.
This is mostly just a play to get investors to sink more money into covering their absolutely insane cash burn for another year.
They might not make a profit, but Altman will be able to extract a lot of wealth by using 7% of a billions of dollars valuation. Even if he doesn’t sell any he can use it as collateral against loans to effectively turn them into cash.
But wouldn’t he have to repay such loans?
Only if the collateral he put up goes down in value too much
Oh, absolutely. Altman is going to plunder this sinking ship for everything it’s worth, and then bail into a CTO position somewhere else. All the C suite at OpenAI will win big no matter what, everyone else there will get fucked.
