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OpenAI to buy AI startup from Jony Ive

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Re: OpenAI to buy AI startup from Jony Ive

#611

Earlier quoted context omitted.

My understanding is that there are two types of stock, and the non profit controls the voting stock majority. This cannot be diluted. All other stock gives a (capped) fraction of the profits. This cannot be diluted by these operations, but the cap also can be a bad deal.

That's an interesting point about the different stock classes and voting rights. It adds another layer to how these kinds of acquisitions and valuations might play out in the long run, especially concerning the non-profit's influence. How often are such dual-class stock structures truly effective in maintaining the original mission when large sums and external valuations come into play?

The case of OpenAI is very unique. The structure is very successful. See Meta, Google, Palantir.

Some take the form of different stock classes, with some classes having voting rights, and others no vote at all; other schemes are stock with supervoting rights.

Re: OpenAI to buy AI startup from Jony Ive

#612

No question that Ive is a legend, but I do think the fall of Humane (also ex-Apple) and the challenges at Meta, Apple, and Google in terms of VR/AR adoption (Meta Ray Ban, Apple Vision, Google Glasses and the new thing) are instructive here. The $6.5B almost feels like the largest ever aquihire.

"The takeover of io will provide OpenAI with about 55 hardware engineers, software developers and manufacturing experts" 6.5B / 55 = $118 million per engineer not a cheap aquihire

Who now expect to be paid.

Re: OpenAI to buy AI startup from Jony Ive

#613
post #481

Earlier quoted context omitted.

Really? My perception (and their metrics seem to back this up) is that “normal people” are really on Reddit now. It’s the #7 most visited site in the world. It exploded during the pandemic - not just a site for internet nerds anymore.

My perception is that the site is horrifically partisan and punishing for average users. The key is to not mistake your social circle with "normal".

Truth be told, according to stats, 90+% of the people barely post anything, if at all. To experience the horrific moderation, you need to get actively involved. Otherwise, the site looks like organic consensus, when you don't see the deleted posts and people who got disappeared or driven away.

Re: OpenAI to buy AI startup from Jony Ive

#614
post #355

> In the interview, Altman said Jobs would be “damn proud” of Ive’s latest move. What an extremely weird (and egotistical) thing to say if you're in Altman's position

… Unless he engineered the entire deal himself and wanted to make it seem like it was Ive’s greatest maneuver.

Re: OpenAI to buy AI startup from Jony Ive

#616

What the other commenters are forgetting is that this is the same Sam Altman who planned and executed the extraction of Reddit from Condé Nast. This acquisition (and the Windsurf acquisition) are all-stock deals, which have the added benefit of reducing the control the nonprofit entity has over the for profit OpenAI entity. How do you extract the for profit entity out of the hands of a nonprofit? - Step 1: you have c…

> This acquisition (and the Windsurf acquisition) are all-stock deals

I'll add that conventional finance wisdom says that you should only buy companies using stock when you believe your stock is overvalued. That way you get more bang for your buck than cash or undervalued stock.

Re: OpenAI to buy AI startup from Jony Ive

#617

What the other commenters are forgetting is that this is the same Sam Altman who planned and executed the extraction of Reddit from Condé Nast. This acquisition (and the Windsurf acquisition) are all-stock deals, which have the added benefit of reducing the control the nonprofit entity has over the for profit OpenAI entity. How do you extract the for profit entity out of the hands of a nonprofit? - Step 1: you have c…

> Sam Altman who planned and executed the extraction of Reddit from Condé Nast Relevant thread where Sam acknowledges the plan. https://old.reddit.com/r/AskReddit/comments/3cs78i/whats_the...

Am I the only one who read samaltman's comment as obvious sarcasm?

Re: OpenAI to buy AI startup from Jony Ive

#618

It’s mind boggling how much money is floating around once you are part of the insider circle. What has that company been doing to be worth 6.5 billion?

> It’s mind boggling how much money is floating around once you are part of the insider circle.

it's a big club and you ain't in it [1]

[1] https://www.youtube.com/watch?v=cKUaqFzZLxU

Re: OpenAI to buy AI startup from Jony Ive

#619
post #320

tbh has jony ive produced any remarkable hardware piece since he left apple? Can't think of any maybe im wrong he must be buying the name or something or just the brains idk

Also remember Ive didn’t even plan for the watch to be fitness he wanted high end fashion. He’s not always the best. Lighting struck once and he says aluminum in a smart sounding way, give him a billion

To be fair, those aluminum chassis ended up involving spin welding to make them stiff enough at those dimensions, which I believe had mostly been used in aerospace up until that point.

Re: OpenAI to buy AI startup from Jony Ive

#620
Look at all of these big names that OpenAI is attaching itself to.

Buy "nobody company" from Jony Ive (using stock)

This incessant need to associate themselves with highly known individuals and over the top announcements reminds me of "Theranos" and infamous con artist, Elizabeth Holmes.

Sam Altman sure knows how to sell.

I wonder how much longer he can keep the con going, even though many of the original founders have left. Maybe 2-3 more years of this dog and pony show before it all comes crashing down in the most spectacular way.

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