OpenAI removes Sam Altman's ownership of its Startup Fund
1–10 of 48 posts
Re: OpenAI removes Sam Altman's ownership of its Startup Fund
#2Would have been a great April Fools'.
Re: OpenAI removes Sam Altman's ownership of its Startup Fund
#3Given that apparently people don't understand the difference between LPs and GPs this unfortunately makes sense
Re: OpenAI removes Sam Altman's ownership of its Startup Fund
#4How did he do that deal? That's really rich! He should buy the trademark OpenAI and lease it back to the non-profit now to boot! Gotta love a mastermind capitalist like Altman at work! We can all learn a thing or two from him.
Re: OpenAI removes Sam Altman's ownership of its Startup Fund
#5There's more to this story. https://www.nongaap.com/p/openai-startup-fund-gp-hallucinati...
Re: OpenAI removes Sam Altman's ownership of its Startup Fund
#6"OpenAI has said Altman does not have financial interest in the fund despite the ownership."
Can someone explain how this could be true?
Re: OpenAI removes Sam Altman's ownership of its Startup Fund
#7I'm not a lawyer, but I've been involved in a fair bit of venture fund formation.
A fund is not an incorporated entity, but rather a partnership of two persons. In a limited partnership, one of those persons is the general partner and does all the work and assumes the related liability, and the rest are "limited partners" who just commit capital.
Banks and tax authorities only open accounts for actually-formed partnerships, not hypothetical partnerships that might happen in the future. But, you need a bank account for the LP investors to send their money to.
So, in my experience it is super common to have a temporary Initial LP, which is usually a related person (one of the founders of the firm acting in their personal capacity, for example), to allow the Initial LP and the GP to form the fund and open the accounts. Then the Initial LP withdraws in the actual closing event where the investors sign onto the partnership agreement and commit their money.
I have never seen an "initial GP" though. I believe the explanation, but can't really figure out why one would be necessary. Maybe they wanted to incorporate a GP Co, but didn't get around to it?
Love to hear any theories why this might be useful..?
Re: OpenAI removes Sam Altman's ownership of its Startup Fund
#8"OpenAI has said Altman does not have financial interest in the fund despite the ownership." Can someone explain how this could be true?
It could mean there were other agreements, where he didn't put any money into the fund and all profits were contractually obligated elsewhere?
Re: OpenAI removes Sam Altman's ownership of its Startup Fund
#9"OpenAI has said Altman does not have financial interest in the fund despite the ownership." Can someone explain how this could be true?
It simply means he didn't put his own money into the fund.
Re: OpenAI removes Sam Altman's ownership of its Startup Fund
#10Given Elons lawsuit, how would this impact that is a wonder?
Is it a way to solidly say that Sam had no real say with authority so anything he and Elon agreed was not binding to the company and formally acknowledging that by this action?