Confidential submission of draft S-1 to the SEC

Post by tsunamifury » Mon, Jun 08, 2026, 10:57 PM UTC

krona wrote: post #27

ai_critic wrote: post #10

> We have not decided on timing yet; it may be a while because there are things we want to do that are likely easier as a private company. Presumably those things were harder as a charity/non-profit.

They need to financially engineer a good looking quarter beforehand. Perhaps Larry Ellison can cut them a nice quid pro quo for a few months to make OpenAI look profitable (like the SpaceX/Anthropic deal), although that's probably unlikely given the debt Oracle is taking on to build it's infra.

Post by taneq » Mon, Jun 08, 2026, 10:58 PM UTC

krona wrote: post #27

ai_critic wrote: post #10

> We have not decided on timing yet; it may be a while because there are things we want to do that are likely easier as a private company. Presumably those things were harder as a charity/non-profit.

They need to financially engineer a good looking quarter beforehand. Perhaps Larry Ellison can cut them a nice quid pro quo for a few months to make OpenAI look profitable (like the SpaceX/Anthropic deal), although that's probably unlikely given the debt Oracle is taking on to build it's infra.

Post by JumpCrisscross » Mon, Jun 08, 2026, 11:00 PM UTC

ghshephard wrote: post #38

fear91 wrote: post #29

I don’t get what’s the point of non-profits if you can IPO them. How does that make any sense?

See: https://www.axios.com/2023/11/18/how-openai-board-is-structu... for the OpenAI Structure. 1) In order to fund research - this stuff costs 10s of billions of dollars - everyone, from Ilya, to Elon, to Sam - all agreed that they would require a profit-arm to raise money. Nobody was going to sponsor that 10s of billions of dollars to a non-profit. 2) The non profit is still there - and controls the commercial eleme…

Post by JumpCrisscross » Mon, Jun 08, 2026, 11:01 PM UTC

alpinisme wrote: post #46

ghshephard wrote: post #38

Earlier quoted context omitted.

See: https://www.axios.com/2023/11/18/how-openai-board-is-structu... for the OpenAI Structure. 1) In order to fund research - this stuff costs 10s of billions of dollars - everyone, from Ilya, to Elon, to Sam - all agreed that they would require a profit-arm to raise money. Nobody was going to sponsor that 10s of billions of dollars to a non-profit. 2) The non profit is still there - and controls the commercial eleme…

“Controls” That will be especially untrue after IPO when shareholders can claim there are fiduciary responsibilities that conflict with the non profit goals.

Post by JumpCrisscross » Mon, Jun 08, 2026, 11:03 PM UTC

echoangle wrote: post #77

rfgplk wrote: post #49

Companies IPOing should be forced to put up their estimated market cap as collateral in cash. Oh what is that? You don't have $1 trillion in cash to put up? Cool, you're not a $1 trillion dollar company then.

Where would a company ever get their market cap in cash? If they had that, wouldn’t they by definition have a higher market cap, since the value of the company is cash + the rest of the company?