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OpenAI to remove non-profit control and give Sam Altman equity (www.reuters.com)

submitted 1 month ago* (last edited 1 month ago) by [email protected] to c/[email protected]

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[–] [email protected] 79 points 1 month ago* (last edited 1 month ago) (1 children)

Least shocking news ever. This has clearly been in the works for a while. Not that it'll matter at this point, given that the notion of OpenAI making any profit is kind of a pipe dream right now.

This is mostly just a play to get investors to sink more money into covering their absolutely insane cash burn for another year.

[–] [email protected] 43 points 1 month ago* (last edited 1 month ago) (2 children)

They might not make a profit, but Altman will be able to extract a lot of wealth by using 7% of a billions of dollars valuation. Even if he doesn't sell any he can use it as collateral against loans to effectively turn them into cash.

[–] [email protected] 27 points 1 month ago

Oh, absolutely. Altman is going to plunder this sinking ship for everything it's worth, and then bail into a CTO position somewhere else. All the C suite at OpenAI will win big no matter what, everyone else there will get fucked.

[–] [email protected] 1 points 1 month ago (3 children)

But wouldn’t he have to repay such loans?

[–] [email protected] 8 points 1 month ago (1 children)

Yes, with the money he’d earn off the money he borrowed. This is why taxing unrealized gains is a national conversation. “It’s not money until you sell it” but you can borrow it like it’s money and make actual other money with it likes it’s money.

[–] [email protected] 2 points 1 month ago

This is an informative answer, thank you

[–] [email protected] 4 points 1 month ago

It's not like he will be spending the cash exclusively on blow, model escorts and yachts.

Part will go into real investments. And he is well positioned to time an AI pump and dump.

[–] [email protected] 2 points 1 month ago

Only if the collateral he put up goes down in value too much