There's more to this story. https://www.nongaap.com/p/openai-startup-fund-gp-hallucinati...
Since I’m not an expert in corporate law, anyone know how much of what’s described in the above is legal?
OpenAI removes Sam Altman's ownership of its Startup Fund
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Re: OpenAI removes Sam Altman's ownership of its Startup Fund
#12There's more to this story. https://www.nongaap.com/p/openai-startup-fund-gp-hallucinati...
The AGI is now running OAI. Hide your paperclips.
Re: OpenAI removes Sam Altman's ownership of its Startup Fund
#13How 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.
You can't register a brand trademark unless you're (already) using it; this is one key difference between copyright and trademarks.
Re: OpenAI removes Sam Altman's ownership of its Startup Fund
#14Re: OpenAI removes Sam Altman's ownership of its Startup Fund
#15There's more to this story. https://www.nongaap.com/p/openai-startup-fund-gp-hallucinati...
Since I’m not an expert in corporate law, anyone know how much of what’s described in the above is legal?
At the very least, any false disclosures in the governmental filings would be illegal, and the bizarre mixture of overlapping names and addresses for the listed directors (as discussed extensively in the article) suggests some degree of dishonesty.
I too am not an expert on corporate law, but very few governments make it legal to lie on these types of forms.
Re: OpenAI removes Sam Altman's ownership of its Startup Fund
#16I'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 partne…
Rewriting this to just say it could be simply to shift liability for your initial GP to the new one; not sure why you would choose this structure in that case but it's possible?
It could also be that the initial GP had individual contractual or ethical obligations that were counter to the best interest of other investors so could not continue acting in control of the investment vehicle, that'd be a reason to change
But no, no idea why you would plan to have an initial GP
Re: OpenAI removes Sam Altman's ownership of its Startup Fund
#17Re: OpenAI removes Sam Altman's ownership of its Startup Fund
#18I'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 partne…
None of this makes sense in a Master-Feeder model, as the master fund is a partnership between the feeder funds, one US, one offshore for foreign investors
The general partner is not an owner they are a manager. The general partner doesnt have to be a human either it can be another entity or multiple entities
all of this can be hotswapped
Even in a mini-master models or single US entity model, LPs are the owners, GP is just a managing member. “ownership” in the context of this article is ambiguous, but the SEC filings would add the clarity necessary for this discussion, probably “manager” or “controlling person”
Re: OpenAI removes Sam Altman's ownership of its Startup Fund
#19"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.
Might it therefore imply that he seeks to put others but not his own money into the fund?
Or does it imply that he has no intention of profiting from the fund?