851–860 of 1001 posts
Instead he will come away with this untouchable. He’ll get to stack the board like he wanted to. Part of being on a board of directors is sticking to your decisions. They are weak and weren’t prepared for the backlash of one person.
OpenAI's Future and Viability - OpenAI has damaged their brand and lost trust, but may still become a hugely successful company if they build great products - OpenAI looks stronger now with a more professional board, but has fundamentally transformed into a for-profit focused on commercializing LLMs - OpenAI still retains impressive talent and technology assets and could pivot into a leading AI provider if managed we…
As an employee of OpenAI: fuck you and your condescending conclusions about my peers and my motivations.
If OpenAI remains a 501(c)(3) charity, then any employee of Microsoft on the board will have a fiduciary duty to advance the mission of the charity, rather than the business needs of Microsoft. There are obvious conflicts of interest here. I don't expect the IRS to be a fan of this arrangement.
OpenAI is not a charity. Microsoft's investment is in OpenAI Global, LLC, a for-profit company. From https://openai.com/our-structure - First, the for-profit subsidiary is fully controlled by the OpenAI Nonprofit. We enacted this by having the Nonprofit wholly own and control a manager entity (OpenAI GP LLC) that has the power to control and govern the for-profit subsidiary. -Second, because the board is still the bo…
I find it worrying that Elon Musk is totally silent through this whole drama.
Fascinating, I see a lot of VC/Msfot has overthrown our NPO governing structure because of profit incentives narrative. I don't think this is what really happened at all. The reason this decision was made was because 95% of employees sided with Sam on this issue, and the board didn't explain themselves in any way at all. So it was Sam + 95% of employees + All investors against the board. In which case the board shoul…
Bigger picture, I don't think the "money/VC/MSFT/commercialization faction destroyed the safety/non-profit faction" is mutually exclusive with "the board fucked up." IMO, both are true
If OpenAI remains a 501(c)(3) charity, then any employee of Microsoft on the board will have a fiduciary duty to advance the mission of the charity, rather than the business needs of Microsoft. There are obvious conflicts of interest here. I don't expect the IRS to be a fan of this arrangement.
But all that seems a lot more like an episode of Succession and less like real life to be honest.
If OpenAI remains a 501(c)(3) charity, then any employee of Microsoft on the board will have a fiduciary duty to advance the mission of the charity, rather than the business needs of Microsoft. There are obvious conflicts of interest here. I don't expect the IRS to be a fan of this arrangement.
OpenAI is not a charity. Microsoft's investment is in OpenAI Global, LLC, a for-profit company. From https://openai.com/our-structure - First, the for-profit subsidiary is fully controlled by the OpenAI Nonprofit. We enacted this by having the Nonprofit wholly own and control a manager entity (OpenAI GP LLC) that has the power to control and govern the for-profit subsidiary. -Second, because the board is still the bo…
OpenAI is a charity nonprofit, in fact.
> Microsoft's investment is in OpenAI Global, LLC, a for-profit company.
OpenAI Global LLC is a subsidiary two levels down from OpenAI, which is expressly (by the operating agreement that is the LLC's foundational document) subordinated to OpenAI’s charitable purpose, and which is completely controlled (despite the charity's indirect and less-than-complete ownership) by OpenAI GP LLC, a wholly owned subsidiary of the charity, on behalf of the OpenAI charity.
And, particularly, the OpenAI board is. as the excerpts you quote in your post expressly state, the board of the nonprofit that is the top of the structure. It controls everything underneath because each of the subordinate organizations foundational documents give it (well, for the two entities with outside invesment, OpenAI GP LLC, the charity's wholly-owned and -controlled subsidiary) complete control.
If OpenAI remains a 501(c)(3) charity, then any employee of Microsoft on the board will have a fiduciary duty to advance the mission of the charity, rather than the business needs of Microsoft. There are obvious conflicts of interest here. I don't expect the IRS to be a fan of this arrangement.
Others have pointed out several reasons this isn't actually a problem (and that the premise itself is incorrect since "OpenAI" is not a charity), but one thing not mentioned: even if the MS-appointed board member is a MS employee, yes they will have a fiduciary duty to the organizations under the purview of the board, but unless they are also a board member of Microsoft (extraordinarily unlikely) they have no such fi…
If OpenAI remains a 501(c)(3) charity, then any employee of Microsoft on the board will have a fiduciary duty to advance the mission of the charity, rather than the business needs of Microsoft. There are obvious conflicts of interest here. I don't expect the IRS to be a fan of this arrangement.
OpenAI is not a charity. Microsoft's investment is in OpenAI Global, LLC, a for-profit company. From https://openai.com/our-structure - First, the for-profit subsidiary is fully controlled by the OpenAI Nonprofit. We enacted this by having the Nonprofit wholly own and control a manager entity (OpenAI GP LLC) that has the power to control and govern the for-profit subsidiary. -Second, because the board is still the bo…
Im not criticizing. Big fan of avoiding being taxed to fund wars....but its just funny to me it seems like theyre sort of having their cake and eating it too with this kind of structure.
Good for them.