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OpenAI’s promise to stay in California helped clear the path for its IPO

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Re: OpenAI’s promise to stay in California helped clear the path for its IPO

#61

Post by conradev »

swyx wrote: post #14
jameslk wrote: post #11

TFA: > OpenAI had spent months making the case that it was the economic heart of the California economy—and would be willing to leave if Bonta blocked its plan to convert to a simpler corporate structure. https://x.com/sama/status/1983223056668746218 : > California is my home, and I love it here, and when I talked to Attorney General Bonta two weeks ago I made clear that we were not going to do what those other compa…

> if Bonta blocked its plan to convert to a simpler corporate structure. i'm a bit out of the loop but honestly why does California have a say? surely the investor base and Microsoft was a far harder negotiation than this one. this one smells of govt overreach.

  But who oversees how charities use their assets and ensures that they are used for public benefit?

  That job lies with the Charitable Trusts Section of California’s Office of the Attorney General, which is part of the state’s Department of Justice. Charged with both regulatory and law enforcement responsibilities, the section has a big job.
https://www.svcf.org/about/news-media/blog/california-attorn...

Re: OpenAI’s promise to stay in California helped clear the path for its IPO

#62

Post by dmix »

isx726552 wrote: post #56
jameslk wrote: post #11

TFA: > OpenAI had spent months making the case that it was the economic heart of the California economy—and would be willing to leave if Bonta blocked its plan to convert to a simpler corporate structure. https://x.com/sama/status/1983223056668746218 : > California is my home, and I love it here, and when I talked to Attorney General Bonta two weeks ago I made clear that we were not going to do what those other compa…

This feels like a narrative being pushed. Tech oligarchs these days are flexing by showing off how much they are able to bully government, and Altman wants to get in on the game by spinning things this way. I’m not convinced they really bent the rules for OpenAI any more than usual given they only employ a few hundred people.

I doubt OpenAI has to try very hard to convince state politicians, especially to the point of bullying. It's usually the complete opposite where they throw money at you to stay.

Imagine if California managed to scare away the hottest company in the world and all the tax revenue it brings...

Re: OpenAI’s promise to stay in California helped clear the path for its IPO

#63

Post by hshdhdhehd »

DenisM wrote: post #40
jacquesm wrote: post #38

Prediction for the future: OpenAI IPO's lots of money changes hands, it chugs along for a while, hits a hard spot and then is taken private for pennies on the dollar by Microsoft.

Could you elaborate? Not looking for a proof, just want to understand your train of thought. Always liked your commentary. Thanks!

Probably predicting either pop of AI bubble like dotcom in 1999 or the OpenAI emperor has no clothes and the marker sees its shrunk hunk.

Re: OpenAI’s promise to stay in California helped clear the path for its IPO

#64

Post by anthem2025 »

CamelCaseName wrote: post #10
leetharris wrote: post #4

This is kind of a wild story. Sam Altman is openly flexing that he was able to skirt the rules and regulations by threatening economic damage to California. It's not even subtle anymore. This reminds me of when the former CEO of Hyundai, Chung Mong-koo, went to prison for embezzlement. In just 3 years he was pardoned because the President of South Korea basically said, "we need you for the economy." We're not even pr…

Can someone explain to me what Sam Altman is doing to be so far ahead of everyone else in terms of navigating these high stakes roles? This happened at YC and a number of other places too, he goes into situations with nothing and comes out on top despite all odds. Is he that skilled an operator, negotiator, or manipulator or something?

[dead]

Re: OpenAI’s promise to stay in California helped clear the path for its IPO

#65

Post by SecretDreams »

CamelCaseName wrote: post #10
leetharris wrote: post #4

This is kind of a wild story. Sam Altman is openly flexing that he was able to skirt the rules and regulations by threatening economic damage to California. It's not even subtle anymore. This reminds me of when the former CEO of Hyundai, Chung Mong-koo, went to prison for embezzlement. In just 3 years he was pardoned because the President of South Korea basically said, "we need you for the economy." We're not even pr…

Can someone explain to me what Sam Altman is doing to be so far ahead of everyone else in terms of navigating these high stakes roles? This happened at YC and a number of other places too, he goes into situations with nothing and comes out on top despite all odds. Is he that skilled an operator, negotiator, or manipulator or something?

> Is he that skilled an operator, negotiator, or manipulator or something?

He probably has everything every politician has ever asked chatgpt index and ready to be emailed out at any given time?

Re: OpenAI’s promise to stay in California helped clear the path for its IPO

#66

Post by hodder »

Can someone explain to me why California would believe Sam Altman plans to stay in California? This is a weak handshake agreement that could easily be flipped post IPO. The very flip from non-profit to IPO shows he will do what it takes for OpenAI to "succeed", so why would the geographical location be any more permanent than corporate structure. This isnt a diss to Sam either, it just shows he is motivated by whatever is best for the entity at any given time.

They might stay in California, but that probably has far more to do with available researchers and employee preferences than some agreement with the Attorney General.

Re: OpenAI’s promise to stay in California helped clear the path for its IPO

#67

Post by MichaelZuo »

JumpCrisscross wrote: post #29
dragonwriter wrote: post #22

Earlier quoted context omitted.

Corporations are applications of government power and have no natural rights, their legal rights are at best proxies for the rights of natural persons with some interest in them, and at worst a fiction which serves to limit the rights of natural persons. Also, having a right to do something does not contradict a description of you leveraging power by using a threat of doing it, in the first place.

> Corporations are applications of government power and have no natural rights Sure. Whatever. The people who own and work at OpenAI have no obligation to remain in California. (I’d also argue that global norms are currently walking back from the notion of natural rights pretty much everywhere except for in some parts of Europe. The concept doesn’t work without an appeal to divinity.)

The legal entity is what owns the IP, contracts, obligations, property, etc… so even if 100% of the current employees and owners moved, their collective worth and prospects would be significantly reduced if the legal entity doesn’t also come along.

Re: OpenAI’s promise to stay in California helped clear the path for its IPO

#68

Post by hshdhdhehd »

d0odk wrote: post #28
somanyphotons wrote: post #7

Earlier quoted context omitted.

ETFs like VOO will buy it eventually. It started me wondering if theres an ETF that explicitly avoids the top 20 companies

My gut instinct is that this would be a hugely underperforming investment strategy on both an absolute and risk adjusted basis. I would welcome empirical evidence contradicting my gut.

I'd rather cross to international (including. US) than to that, for a less performing but more Black Swan proof fund.

Re: OpenAI’s promise to stay in California helped clear the path for its IPO

#69

Post by coliveira »

CamelCaseName wrote: post #10
leetharris wrote: post #4

This is kind of a wild story. Sam Altman is openly flexing that he was able to skirt the rules and regulations by threatening economic damage to California. It's not even subtle anymore. This reminds me of when the former CEO of Hyundai, Chung Mong-koo, went to prison for embezzlement. In just 3 years he was pardoned because the President of South Korea basically said, "we need you for the economy." We're not even pr…

Can someone explain to me what Sam Altman is doing to be so far ahead of everyone else in terms of navigating these high stakes roles? This happened at YC and a number of other places too, he goes into situations with nothing and comes out on top despite all odds. Is he that skilled an operator, negotiator, or manipulator or something?

There is a book written about this topic. SA is the classic manipulator. He talks to each person whatever they want to hear, irrespective of what he really believes. Many of the things he says about AI and OpenAI are clear BS, but he'll sell that to anyone with a different flavor.

Re: OpenAI’s promise to stay in California helped clear the path for its IPO

#70

Post by gyomu »

hodder wrote: post #66

Can someone explain to me why California would believe Sam Altman plans to stay in California? This is a weak handshake agreement that could easily be flipped post IPO. The very flip from non-profit to IPO shows he will do what it takes for OpenAI to "succeed", so why would the geographical location be any more permanent than corporate structure. This isnt a diss to Sam either, it just shows he is motivated by whatev…

Perhaps it’s not so much that they believe he’ll stay in California long term if he gets what he wants; more that they do believe he’ll leave in the short term if he doesn’t.
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