Earlier quoted context omitted.
My own thoughts: If I had been on the jury, I would have found against Musk on every point. His lawyers created a “3 phases of doubt” to try and sidestep the statute of limitations, but it was clearly bogus and he was on notice of OpenAI creating a for-profit in 2019. Musk was perfectly happy to have OpenAI be a for-profit, a non-profit with an attached for-profit (the current structure), or even just absorbed into T…
I think this is missing the main point that Musk was never the owner of OpenAI, neither was Sam, nor the employees. The owners are the American people. I presume Musk got a tax rebate from his donation, courtesy of the taxpayer; so did every other donor. The fact is, OpenAI was a non-profit belonging to the public and it was appropriated by the donors... Who already got their tax cuts. This is setting a precedent tha…
It is actually extremely important that no one “owns” a nonprofit in the way shareholders own a corporation. A nonprofit has no equity owners. It has directors/officers with fiduciary duties, and its assets must be used consistently with its charitable/public-benefit purpose.
But to be clear, that is in no way equivalent, even metaphorically, to it being "owned by the public".
“Public benefit” does not mean “whatever the median taxpayer would vote for” or “whatever the government currently approves of.” It includes many causes supported by small, unpopular, eccentric, religious, ideological, scientific, or advocacy-oriented communities, so long as the organization fits within an exempt purpose and does not operate for impermissible private benefit.
simple examples can easily elucidate this. One can found a nonprofit for a purpose that society generally disagree with. For instance: - a nonprofit to advocate for the rights of hemorrhagic fevers as living organisms - nonprofit museum devoted to preserving a deeply unpopular ideology’s historical artifacts - a nonprofit to educate the public about an eccentric scientific theory - a nonprofit advocating for legal recognition of some fringe moral concern
All of these could be legitimate nonprofits under the law, even though we may deeply disagree with them. This is by design.