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Confidential submission of draft S-1 to the SEC

openai.com

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Re: Confidential submission of draft S-1 to the SEC

#101

Post by bwhiting2356 »

Atreiden wrote: post #82
wmf wrote: post #33

Earlier quoted context omitted.

They're IPOing a commercial subsidiary of OpenAI so that it can donate even more money to the parent nonprofit. (Actually the subsidiary is everything and the nonprofit is a do-nothing fig leaf but the IRS and Congress seem to not care enough to stop them.)

But then private shareholders are able to extract shareholder value from the subsidiary, so the "nonprofit" component is utterly meaningless here. How is this not illegal? What prevents any nonprofit from doing this to sidestep its filing status and extract profit?

not to be a shill, but isn't it good for the non-profit to own a big piece of a successful company?

Re: Confidential submission of draft S-1 to the SEC

#105

Post by thin_carapace »

dofm wrote: post #25
shimman wrote: post #15

Growing worry I have are the dozens of newly minted corporate elites that will continue to wreck havoc on the tech industry mandating their golden paths while America still lacks medicare for all, college for all, and universal childcare. If you think Sam Altman is bad for the industry, imagine what 200 of him will be like!

I was wondering about this the other week. Is there a chart, somewhere, like a family tree, of what the Apple and Microsoft stock "ordinary millionaires" went on to do?

we need more non tech women to marry and divorce craven tech men so that at least half of these scrooge like fortunes can get donated

edit: id love to tally all the donations done by techies and compare them to how much of bezos fortune has ended up routed to charity via his ex

Re: Confidential submission of draft S-1 to the SEC

#106

Post by yieldcrv »

Atreiden wrote: post #82
wmf wrote: post #33

Earlier quoted context omitted.

They're IPOing a commercial subsidiary of OpenAI so that it can donate even more money to the parent nonprofit. (Actually the subsidiary is everything and the nonprofit is a do-nothing fig leaf but the IRS and Congress seem to not care enough to stop them.)

But then private shareholders are able to extract shareholder value from the subsidiary, so the "nonprofit" component is utterly meaningless here. How is this not illegal? What prevents any nonprofit from doing this to sidestep its filing status and extract profit?

A few things, but they work very well for our industry.

The rule is that the nonprofit and disqualified persons (mostly board members), cant own businesses together, well they can but not more than 35% of it together, and a max of 20% can have voting capability

The consequences arent immediate, non profits have 3 years to correct this

Now in the tech industry, getting VCs involved is already the plan from day one and founders get diluted, so getting below 35% is either easy, or easy within 3 years

so they’re fine

there’s a lot of things they can all do to deal with the share consolidation

Re: Confidential submission of draft S-1 to the SEC

#107

Post by [deleted] »

SecretDreams wrote: post #84
JumpCrisscross wrote: post #75

Earlier quoted context omitted.

> like the SpaceX/Anthropic deal I understand the scepticism around Google's deal with SpaceX, given the former holds a stake in the latter. But Anthropic buying SpaceX's compute doesn't have any related-party smell to it. That genuinely looks like SpaceX having cornered some valuable compute.

Google owns 14% Anthropic and 6% xAI. When Anthropic spends on xAI, it benefits Google. When google spends on xAI, it benefits Google. When xAI spends on Google, believe it or not, that benefits Google. This is how a Ponzi -style circular financing scheme typically works.

[deleted]

Re: Confidential submission of draft S-1 to the SEC

#110

Post by JumpCrisscross »

sciencejerk wrote: post #58

When/how are IPO dates released?

> When/how are IPO dates released?

Once the SEC declares a registration statement "effective," the company is subject to the Exchange Act's reporting requirements. Theoretically one can do this and not list one's shares. That's dumb, so nobody does it.

In practice, we'll get a couple weeks to possibly days ahead of the listing. That process is partly governed by the SEC accepting the company's S-1. It's mostly down to negotiations between the company, its underwriters and IPO investors.

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