OpenAI Committed to Buying $51M of AI Chips from a Startup Backed by Sam Altman • Hacker News Board

Re: OpenAI Committed to Buying $51M of AI Chips from a Startup Backed by Sam Altman

#51

Post by maizeq » Sun, Dec 03, 2023, 2:14 PM UTC

0xbadc0de5 wrote: post #14

Google has their own chips. Amazon do... Meta as well... Vertical integration is a competitive advantage worth pursuing for OpenAI. The spin is just that - spin.

This news is not about vertical integration or competitive advantage but of potential conflicts of interest. Meta/Amazon/Alphabet chips are made in house or from acquisitions (presumably with the CEO having no financial stake in the acquired companies)

This is instead a question of whether Sama preferentially made a contract with Rain, perhaps despite better alternatives. (Which would benefit him but might not be in the best interests of stake holders).

It’s possible it was the correct decision though, and his stake is just a fortunate side-effect, after all Sam is also invested in other chip companies (Cerebras I believe?).

Re: OpenAI Committed to Buying $51M of AI Chips from a Startup Backed by Sam Altman

#52

Post by l33tman » Sun, Dec 03, 2023, 2:15 PM UTC

newsclues wrote: post #24

gwnywg wrote: post #3

If the article is based on facts then... is this not an example of corruption?

I am not a lawyer, but not necessarily. I think it comes down to, is this good for this company. If not and you are directing sales to another company that benefits you, that would be bad, but if buying from the other company you invest in is good for OpenAI, then it's ok. You are allow to have other investments, it comes down to disclosure, and not making a bad deal for reasons that personally profit you.

You're directly or indirectly making sure the company you've invested in will get boosted if you as CEO owns a stake. Therefore it's a conflict of interest - what if that particular company is only the second best to deal with? Either you as CEO or any middle-manager under you will probably give it some bonus points and it will end up getting the deal, news outlets will write about it, etc etc.

At the very least you should let the board handle any potential dealings with the company and have 100% disclosure at all times (as you say)

Re: OpenAI Committed to Buying $51M of AI Chips from a Startup Backed by Sam Altman

#53

Post by nabla9 » Sun, Dec 03, 2023, 2:15 PM UTC

This kind of stuff is the reason why Altman was fired.

The board lost trust for his honesty from many small things that kept accumulating. Altman is back on condition that there is a investigation.

Re: OpenAI Committed to Buying $51M of AI Chips from a Startup Backed by Sam Altman

#54

Post by tsimionescu » Sun, Dec 03, 2023, 2:18 PM UTC

gumballindie wrote: post #5

gwnywg wrote: post #3

If the article is based on facts then... is this not an example of corruption?

[flagged]

He has been accused on Twitter of "climbing in her bed non-consensually" when he was 13 (and she 4). She has also explicitly said she doesn't actually want legal action for "experiences between a baby child and a tween child", again suggesting that anything that happened only happened when he was a child. She also has a history of mental illness.

Re: OpenAI Committed to Buying $51M of AI Chips from a Startup Backed by Sam Altman

#55

Post by ethbr1 » Sun, Dec 03, 2023, 2:19 PM UTC

afavour wrote: post #31

gwnywg wrote: post #3

If the article is based on facts then... is this not an example of corruption?

It could be an example of Sam Altman making incredible investment choices. Or, yes, it could be corruption. Have to investigate to know one way or the other.

If the company you control throws a lifeline to the company you're a major investor in...

Not sure "making incredible investment choices" is the word I would use.

Re: OpenAI Committed to Buying $51M of AI Chips from a Startup Backed by Sam Altman

#56

Post by keep_reading » Sun, Dec 03, 2023, 2:20 PM UTC

nabla9 wrote: post #53

This kind of stuff is the reason why Altman was fired. The board lost trust for his honesty from many small things that kept accumulating. Altman is back on condition that there is a investigation.

You don't know that for a fact, you're speculating

Re: OpenAI Committed to Buying $51M of AI Chips from a Startup Backed by Sam Altman

#57

Post by tinyhouse » Sun, Dec 03, 2023, 2:20 PM UTC

The guy doesn't even hold personal shares at OpenAI, which could've been worth billions if he did (he's a cofounder and CEO to remind you, so it's unheard of), and you're blaming him for buying chips from a startup he made a small investment in? Seriously. Maybe go after the CEOs who rob their employees and take all the money to themselves.

Just to be clear, I never met the guy and have no affiliation with OpenAI.

Re: OpenAI Committed to Buying $51M of AI Chips from a Startup Backed by Sam Altman

#58

Post by newsclues » Sun, Dec 03, 2023, 2:21 PM UTC

l33tman wrote: post #52

newsclues wrote: post #24

Earlier quoted context omitted.

I am not a lawyer, but not necessarily. I think it comes down to, is this good for this company. If not and you are directing sales to another company that benefits you, that would be bad, but if buying from the other company you invest in is good for OpenAI, then it's ok. You are allow to have other investments, it comes down to disclosure, and not making a bad deal for reasons that personally profit you.

You're directly or indirectly making sure the company you've invested in will get boosted if you as CEO owns a stake. Therefore it's a conflict of interest - what if that particular company is only the second best to deal with? Either you as CEO or any middle-manager under you will probably give it some bonus points and it will end up getting the deal, news outlets will write about it, etc etc. At the very least you…

If you are on the board of directors, and also invest in the local power company, is it a conflict of interest if the company pays for power from the local utility?

Again, not a lawyer, but I think there is a legal difference between the appearance of conflict of interest, and an actual conflict.

Re: OpenAI Committed to Buying $51M of AI Chips from a Startup Backed by Sam Altman

#59

Post by ekabod » Sun, Dec 03, 2023, 2:23 PM UTC

jaggederest wrote: post #49

belter wrote: post #48

Earlier quoted context omitted.

Again the argument: "I am so rich I would not possibly be dishonest for such a small amounts..." ?

Not exactly what I'm saying. I'm saying that it doesn't look like he has undue influence over the deal, rather than that he's not trying to make a buck. No claim about his honesty or lack thereof, but it doesn't look like a puppet constructed solely to enrich himself.

How do you know this startup didn't need this deal to survive or advertise itself?

Re: OpenAI Committed to Buying $51M of AI Chips from a Startup Backed by Sam Altman

#60

Post by timeon » Sun, Dec 03, 2023, 2:23 PM UTC

gwnywg wrote: post #3

If the article is based on facts then... is this not an example of corruption?

We called it 'tunneling' during 90s in my Eastern-European homeland. Like digging secret tunnel in one company where you have influence and transfer it's wealth into other company that you own.