investors in OpenAI’s commercial entity were capped at making 100 times their money
They should never be allowed to call this a “non-profit” (and probably even get tax exemptions?)
What a dirty lie in the first place!
A maximum of 10,000% profit is “nonprofit”? Any country that allows for something like this is a joke.
OpenAI’s commercial entity
They should never be allowed to call this a “non-profit”
They never did. The nonprofit parent owned shares in a for-profit subsidiary, which was structured in a way that investors in the for-profit subsidiary could never control the company (the nonprofit would own a controlling share) and had their gains capped at 100x.
That’s still a common structure used by billionaires to justify reaping millions of dollars in revenue and still claim, “but I own a non-profit”. Also, to say the nonprofit controls the profit part would require the governance and the management hierarchies to be separate to avoid conflict of interests. But this has never been the case. Now they’re becoming a public benefit company, it will be even less the case, with both boards being one and the same. This will effectively keep the good-will façade while allowing them to lift the profit caps for their friends. It’s all PR bullshit.
Well yeah. DeepSeek destroyed any illusion that they could establish and maintain a monopoly on AI.
Grok Deepsearch is far way better. Also another relevant competitor
It’s controlled by Musk. I wouldn’t trust it.
So you trust more the two other psychos …
No.
establish a nonprofit
get funding from corporate donors
produce a product
generate a profit
?
profitSo they’re slowly admitting genAI is unprofitable…
Their current structure is still profit-oriented. You should read the article maybe.
The structure of OpenAI is quite strange and curious.
Metroid layout.
GPT is the boss located left, the final boss is called Profit, and it’s at the bottom…
They asked chatGPT for a business plan and it gave them hallucinations and half a business plan for a non-profit coalmining organization.
“Previously, investors in OpenAI’s commercial entity were capped at making 100 times their money before the rest of its profits flowed back to the nonprofit.
With the new PBC subsidiary, OpenAI spokesperson Steve Sharpe tells me that investors and employees will own regular stock with no cap on how much it can appreciate. “
They got exactly what they want anyway. This is no victory.
This doesn’t make sense to me. The ultimate value of shares is in the dividends they represent, no? If there are no dividends ever, what are they sharing in? Is it just a postponement until future dividends? A share in control of activities?
I get that there’ll be speculation that will keep values increasing, and selling can net a profit, but what does the last share-holder get?
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