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Evolving OpenAI's Structure

openai.com

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Re: Evolving OpenAI's Structure

#151

[removed]

Not all non-profits are doomed. It's natural that the biggest companies will be the ones who have growth and profit as their primary goal.

But there are still plenty of mission-focused technology non-profits out there. Many of which have lasted decades. For example: Linux Foundation, Internet Archive, Mozilla, Wikimedia, Free Software Foundation, and Python Software Foundation.

Don't get me wrong, I'm also disappointed in the direction and actions of big tech, but I don't think it's fair to dismiss the non-profit foundations. They aren't worth a trillion dollars, however they are still doing good and important work.

Re: Evolving OpenAI's Structure

#152
post #133
post #107

SamA is in a hurry because he's set to lose the race. We're at peak valuation and he needs to convert something now . If the entrenched giants (Google, Microsoft and Apple) catch up - and Google 100% has, if not surpassed - they have a thousand levers to pull and OpenAI is done for. Microsoft has realized this, hence why they're breaking up with them - Google and Anthropic have shown they don't need OpenAI. Galaxy ph…

Sounds a lot like "Google+ will catch Facebook in no time". OpenAI has been on a winning streak that makes ChatGPT the default chatbot for most of the planet. Everybody else like you describe is trying to add some AI crap behind a button on a congested UI. B2B market will stay open but OpenAI has certainly not peaked yet.

That's not at all the same thing: social media has network effects that keep people locked in because their friends are there. Meanwhile, most of the people I know using LLMs cancel and resubscribe to Chat-GPT, Claude and Gemini constantly based on whatever has the most buzz that month. There's no lock-in whatsoever in this market, which means they compete on quality, and the general consensus is that Gemini 2.5 is currently winning that war. Of course that won't be true forever, but the point is that OpenAI isn't running away with it anymore.

And nobody's saying OpenAI will go bankrupt, they'll certainly continue to be a huge player in this space. But their astronomical valuation was based on the initial impression that they were the only game in town, and it will come down now that that's no longer true. Hence why Altman wants to cash out ASAP.

Re: Evolving OpenAI's Structure

#153
post #130

Earlier quoted context omitted.

are you aware of worldcoin? altman building a centralised authority of who will be classed as "human" is about as authoritarian as you could get

Worldcoin is opt-in, which is the opposite of authoritarian. Nobody who doesn’t like it is required to participate.

Comcast is also opt-in. Except, in many areas there are no real alternatives.

I doubt Worldcoin will actually manage to corner the market. But the point is, if it did, bad things would happen. Though, that’s probably true of most products.

Re: Evolving OpenAI's Structure

#154
post #107

SamA is in a hurry because he's set to lose the race. We're at peak valuation and he needs to convert something now . If the entrenched giants (Google, Microsoft and Apple) catch up - and Google 100% has, if not surpassed - they have a thousand levers to pull and OpenAI is done for. Microsoft has realized this, hence why they're breaking up with them - Google and Anthropic have shown they don't need OpenAI. Galaxy ph…

Well I think you’re correct that they know the jig is up, but I would say they know the AI bubble is about to burst so they want to cash out before that happens. There is little to no money to be made in GAI, it will never turn into AGI, and people like Altman know this, so now they’re looking for a greater fool before it is too late.

They made $4 billion last year, not really "little to no money". I agree it's not clear they can justify their valuation but it's certainly not a bubble.

Re: Evolving OpenAI's Structure

#155
post #133

Earlier quoted context omitted.

Sounds a lot like "Google+ will catch Facebook in no time". OpenAI has been on a winning streak that makes ChatGPT the default chatbot for most of the planet. Everybody else like you describe is trying to add some AI crap behind a button on a congested UI. B2B market will stay open but OpenAI has certainly not peaked yet.

Facebook had immense network effects working for it back then. What network effect does OpenAI have? Far as I can tell, moving from OpenAI to Gemini or something else is easy. It’s not sticky at all. There’s no “my friends are primarily using OpenAI so I am too” or anything like that. So again, I ask, what makes it sticky?

Yep, I mostly interact with these AIs through Cursor. When I want to ask it a question, there's a little dropdown box and I can select openai/anthropic/deepseek whatever model. It's as easy as that to switch.

Re: Evolving OpenAI's Structure

#156
post #107

SamA is in a hurry because he's set to lose the race. We're at peak valuation and he needs to convert something now . If the entrenched giants (Google, Microsoft and Apple) catch up - and Google 100% has, if not surpassed - they have a thousand levers to pull and OpenAI is done for. Microsoft has realized this, hence why they're breaking up with them - Google and Anthropic have shown they don't need OpenAI. Galaxy ph…

[flagged]

Re: Evolving OpenAI's Structure

#157

I see OpenAI's original form as the last gasp of a kind of liberal tech; in a world where "doing good" was seen as very important, the non-profit approach made sense and got a lot of people on board. These days the Altmans and the pmarcas of the world are much more comfortable expressing their authoritarian, self-centered world views; the "evolving" structure of Open AI is fully in line with that. They want to be the…

Hopelessly over-idealistic premise. Sama and pg have never been anything other than opportunistic muck. This will be my last ever comment on HN.

Oh I'm not saying they every believed more than their self-centered views, but that in a world that leaned more liberal there was value in trying to frame their work in those terms. Now there's no need to pretend.

Re: Evolving OpenAI's Structure

#158

The explosion of PBC structured corps recently has me thinking it must just be a tax loophole at this point. I can't possibly imagine there is any meaningful enforcement around any of its restrictions or guidelines.

PBCs don’t get special tax treatment. As far as I know they’re taxed exactly the same as typical C or S corps.

Re: Evolving OpenAI's Structure

#159

I see OpenAI's original form as the last gasp of a kind of liberal tech; in a world where "doing good" was seen as very important, the non-profit approach made sense and got a lot of people on board. These days the Altmans and the pmarcas of the world are much more comfortable expressing their authoritarian, self-centered world views; the "evolving" structure of Open AI is fully in line with that. They want to be the…

That world never existed. Yes, pockets did - IT professionals with broadband lines and spare kit hosting IRC servers and phpBB forums from their homes free of charge, a few VC-funded companies offering idealistic visions of the net until funding ran dry (RIP CoHost) - but once the web became privatized, it was all in service of the bottom line by companies. Web 2.0 onwards was all about centralization, surveillance, advertising, and manipulation of the populace at scale - and that intent was never really a secret to those who bothered to pay attention. While the world was reeling from Cambridge Analytica, us pre-1.0 farts who cut our teeth on Telnet and Mosaic were just kind of flabbergasted that ya'll were surprised by overtly obvious intentions.

That doesn't mean it has to always be this way, though. Back when I had more trust in the present government and USPS, I mused on how much of a game changer it might be for the USPS to provide free hosting and e-mail to citizens, repurposing the glut of unused real estate into smaller edge compute providers. Everyone gets a web server and 5GB of storage, with 1A Protections letting them say and host whatever they like from their little Post Office Box. Everyone has an e-mail address tied to their real identity, with encryption and security for digital mail just like the law provides for physical mail. I still think the answer is about enabling more people to engage with the internet on their selective terms (including the option of disengagement), rather than the present psychological manipulation everyone engages in to keep us glued to our screens, tethered to our phones, and constantly uploading new data to advertisers and surveillance firms alike.

But the nostalgic view that the internet used to be different is just that: rose-tinted memories of a past that never really existed. The first step to fixing this mess is acknowledging its harm.

Re: Evolving OpenAI's Structure

#160
post #80

So the non-profit retains control but we all know that Altman controls the board of the non-profit and I'd be shocked if he won't have significant stock in the new for-profit (from TFA: "we are moving to a normal capital structure where everyone has stock"). Which means that regardless of whether the non-profit has control on paper, OpenAI is now even better structured for Sam Altman's personal enrichment. No more ca…

We have seen how much power does the board have after the firing of Altman - none. Let's see how this plays out. PBC effectively means nothing - just take a look at Xai and its purchase of Twitter. I would love to listen reasoning explaining why this ~33 billion USD move is benefiting public.

ChatGPT is free. That's the public benefit.
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