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OpenAI to become for-profit company

reuters.com

291–300 of 809 posts

Re: OpenAI to become for-profit company

#291
post #20

I know nothing about companies (esp. in the US), but I find it weird that a company can go from non-profit to for-profit? Surely this would be taken advantage of. Can someone explain me how this work?

The NFL used to be a nonprofit and now for profit. OpenAI can use similar routes

Re: OpenAI to become for-profit company

#293
post #168

Earlier quoted context omitted.

Everything is allowed to happen until there's a lawsuit over it. A lawsuit requires a plaintiff, who can only sue over the damage suffered by the plaintiff, so taking a little value from a lot of people is a way to succeed in business without getting sued.

Could a class action suit be the solution? I've no idea if it could be valid when it comes to OpenAI, but it does seem to be a general concept designed to counter wrongdoers who take a little value from a lot of people?

It doesn't seem to work very well

Re: OpenAI to become for-profit company

#294
post #288
post #29

Earlier quoted context omitted.

The ones selling the shovels are doing well, but otherwise yeah nobody is making any money. For the true believers that's just a temporary setback on the way to becoming trillionaires though.

Well they are spending billions to make shovels that they are selling for millions (roughly).

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Re: OpenAI to become for-profit company

#295
post #132

Earlier quoted context omitted.

If an "artist" or "thinker" stops because of this, I question their motivations and those labels in the first place.

After Instagram started feeding user photos to their AI models, I stopped adding new photos to my profile. I still take photos. I wonder about your thoughts about my motivation.

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Re: OpenAI to become for-profit company

#296
post #76

Can anyone trust the next "non-profit" startup ? So easy to attract appeal with a lie and turn around as soon as you are in a dominant position.

The trust problem here isn't with non-profits in general, it's specifically with Sam Altman. So no, you probably shouldn't trust the next non-profit he is involved with. But also, people have warned about Altman in advance.

Re: OpenAI to become for-profit company

#297
post #290

Earlier quoted context omitted.

Good point. That sounds a lot like fraud.

Not paying taxes while losing money sounds like fraud to you? What do you propose should be taxed, exactly?

True, non-profits don't pay taxes on any revenue regardless of expense.

How do you know they had no profit with all of the deals with major companies and having one of the most popular software services in existence? Non-profits can earn profit, they just don't have to pay taxes on those profits and they can't distribute those profits to stakeholders -- it goes back to the business.

They are also a private company, and do not have to report revenue, expenses, or profits.

So yeah, I stand by what I said -- it sounds like fraud. And it deserves an audit.

Re: OpenAI to become for-profit company

#298
post #102

Earlier quoted context omitted.

This is the most important question, IMO! ChatGPT says that employees and donors would have to show that they were defrauded (lied to), which IMO wouldn’t exactly be hard given the founding documents. But the real power falls to the government, both state (Delaware presumably…?) and federal. It mentions the IRS, but AFAIU the DoJ itself could easily bring litigation based on defrauding the government. Hell, maybe thr…

Genuinely curious because I have no idea how any of this works... Would the founding documents actually count as proof of a lie? I feel like the defense could easily make the argument that the documents accurately represented their intent at the time, but as time went on they found that it made more sense to change. It seems like, if the founding documents were to be proof of a lie, you'd have to have corresponding p…

Great point, and based on my amateur understanding you’re absolutely correct. I was mostly speaking so confidently because these founding documents in particular define the company as being founded to prevent exactly this.

You’re right that Altman is/will sell it as an unexpected but necessary adaptation to external circumstances, but that’s a hard sell. Potentially not to a court, sadly, but definitely in the public eye. For example:

  We are concerned about late-stage AGI development becoming a competitive race without time for adequate safety precautions… We are committed to providing public goods that help society navigate the path to AGI.   
From 2018: https://web.archive.org/web/20230714043611/https://openai.co...

And this is the very first paragraph of their founding blog post, from 2015:

  OpenAI is a non-profit artificial intelligence research company. Our goal is to advance digital intelligence in the way that is most likely to benefit humanity as a whole, unconstrained by a need to generate financial return. Since our research is free from financial obligations, we can better focus on a positive human impact.
https://openai.com/index/introducing-openai/

Re: OpenAI to become for-profit company

#299

Earlier quoted context omitted.

Even if the knock-on effect is "all the artists and thinkers who contributed to the uncompensated free training set give up and stop creating new stuff"?

Recording devices, you know a record player had a profound effect on artists. go back

That seems like a poor comparison.

Recording devices permitted artists to sell more art.

Many of the uses of AI people get most excited about seem to be cutting the expensive human creators out of the equation.

Re: OpenAI to become for-profit company

#300
post #197

Earlier quoted context omitted.

What “show of support”? Not willing to rock the boat is not the same as being supportive.

What were all those open letter and "let's jump to Microsoft with Altman" shenanigans that the employees were carrying out then?

Why wouldn't they, if everyone else is? Bills to pay, etc.

Low level employees are there for the money, not for the drama.

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