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!
No, those were the terms when the company was “for profit.” Now that they’re “nonprofit” the investors can make unlimited profit.
The billions of dollars the company raised in its last two funding rounds were contingent on successfully removing this limit on investor returns.
A maximum of 10,000% profit is “nonprofit”? Any country that allows for something like this is a joke.
Oh, thanks for pointing that out… my head was just going “Fuck Sam Altman … Fuck Sam Altman … Fuck Sam Altman … Fuck Sam Altman … Fuck Sam Altman …” —
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.
They asked chatGPT for a business plan and it gave them hallucinations and half a business plan for a non-profit coalmining organization.
That or they have worked out that even if AGI is achievable with the current architecture the existence of R1 and other Chinese models essentially means they will never make a profit at it.
If they achieve their goal, within 48 hours the open source community will have replicated it.
So 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…
Probably an emergent structure out of a chain of thought
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
?
profit“we can make enough money without it”
“We lose value on every unit, but make it up through volume.”
Upvoted for classic 24 hour party people reference
Great news.
Wasn’t a major tranche of Softbank’s funding contingent on their being able to do this? They might be broke a lot sooner than people thought without it…
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