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OpenAI to become for-profit company

reuters.com

51–60 of 809 posts

Re: OpenAI to become for-profit company

#51
Relatedly, dalant979 found this fascinating bit of history: https://old.reddit.com/r/AskReddit/comments/3cs78i/whats_the...

Yishan Wong describes a series of actions by Yishan and Sam Altman as a "con", and Sam jumps in to brag that it was "child's play for me" with a smiley face. :)

Re: OpenAI to become for-profit company

#52
post #41
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?

I am not a tax specialist but from my understanding a non-profit is a for-profit that doesn't pay dividends. Why would the government care?

[deleted]

Re: OpenAI to become for-profit company

#54
post #41
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?

I am not a tax specialist but from my understanding a non-profit is a for-profit that doesn't pay dividends. Why would the government care?

That's not correct, they also have tax advantages and a requirement to fulfill their charter.

Re: OpenAI to become for-profit company

#55

The most surprising thing to me in this is that the non-profit will still exist. Not sure what the point of it is anymore. Taken as a whole, OpenAI is now just a for-profit entity beholden to investors and Sam Altman as a shareholder. The non-profit is really just vestigial. I guess technically it's supposed to play some role in making sure OpenAI "benefits humanity". But as we've seen multiple times, whenever that g…

We haven't even heard about who gets voting shares, and what voting power will be like. Based on their character, I expect them to remain consistent in this regard.

Re: OpenAI to become for-profit company

#57
post #41
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?

I am not a tax specialist but from my understanding a non-profit is a for-profit that doesn't pay dividends. Why would the government care?

No, a non-profit is one in which there are no shareholders. The non-profit entity can own a lot and be extremely successful and wealthy, but it cannot give that money to any shareholders. It can pay out large salaries, but those salaries are scrutinized. It doesn't prevent abuse, and it certainly doesn't prevent some unscrupulous person from becoming extremely wealthy with a non-profit, but it is a little more complicated and limiting than you would think. Also, you get audited with routine regularity and if you are found in violation you lose your tax-exempt status, but you still are not a for-profit.

Re: OpenAI to become for-profit company

#58
post #40

Lot of people unhappy about this yet not at all unhappy (or even caring) about the 1,000s of others who started out for profit. And while we're all here hacking away (we're hackers, right?) many of us with startups, what is it we're chasing? Profit, money, time, control. Are we different except in scale? Food for thought.

> Profit, money, time, control

I feel this only scratches the surface of what to chase in life. And in respect to a potentially singular, all-knowing piece of technology, not necessarily a goal people want to embue.

Re: OpenAI to become for-profit company

#59
post #40

Lot of people unhappy about this yet not at all unhappy (or even caring) about the 1,000s of others who started out for profit. And while we're all here hacking away (we're hackers, right?) many of us with startups, what is it we're chasing? Profit, money, time, control. Are we different except in scale? Food for thought.

Your food is undercooked

Re: OpenAI to become for-profit company

#60

Earlier quoted context omitted.

Only hard if you're that kind of person. Not everyone is like that. And those kind of people have difficulty believing this.

Everyone is like that when the number is potentially in the trillions. There are just people who are like that and people who think they aren’t because they’ve never been within a digit grouping of it.

What you're showing me is you don't know very many different people.
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