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0 pointstapoxi2y ago0 comments

Investors wanted to have a commercial enterprise while pretending it was a nonprofit acting for the good of humanity. This helps market something as scary and potentially destructive as AI. "It can't be that bad, they're a nonprofit with altruistic goals!" Then the investors get mad when the board they intended to be figureheads actually try to uphold some principles.

Best to rip the band-aid off and stop pretending.

0 comments

wvenable2y ago

I think you have it backwards. OpenAI specifically sought out investors because they couldn't fulfill their mission without the infrastructure to do it. Investors don't just give money away -- it's in the name itself -- they're investing. The point is for the commercial enterprise to provide a return on their investment.

OpenAI is a non-profit running this commercial enterprise but they are seemingly at odds with that enterprise. Investors should rightly be very concerned about the future of their investment.

function_seven2y ago

Those investors were appropriately warned of this possibility:

> IMPORTANT

> *Investing in OpenAl Global, LLC is a high-risk investment*

> *Investors could lose their capital contribution and not see any return*

> *It would be wise to view any investment in OpenAI Global, LLC in the spirit of a donation, with the understanding that it may be difficult to know what role money will play in a post-AGI world*

> The Company exists to advance OpenAl, Inc.'s mission of ensuring that safe artificial general intelligence is developed and benefits all of humanity. The Company's duty to this mission and the principles advanced in the OpenAl, Inc. Charter take precedence over any obligation to generate a profit. The Company may never make a profit, and the Company is under no obligation to do so. The Company is free to re-invest any or all of the Company's cash flow into research and development activities and/or related expenses without any obligation to the Members.

I guess maybe they thought it was the same boilerplate every prospectus has?

wvenable2y ago

High-risk investments are not rare. To argue that OpenAI can do whatever they want for whatever reason because they state that it's high-risk is not how anything works.

Investors should rightly be concerned about things like gross negligence, active sabotage, or simple infighting. These are all current human concerns and not at all that AGI will destroy the concept of money rendering all investments pointless.

1 more reply

cwillu2y ago

The OpenAI prominently states that any investment should be thought of as a donation. Literally in a bold pinkish-red box that describes its corporate structure.

An investor might read that and think they don't actually mean it, but you can't claim they weren't clear about the nature of any required investment.

wvenable2y ago

OpenAI explicitly created a for profit company to take these investments. It's disingenuous to reframe it as a charity.

1 more reply

superultra2y ago

I think you hit the nail on the head here. Altman himself set this structure up. The real story here is a live by the sword, die by the sword parable.

Similarly, Microsoft is coming across as blameless here, but there’s a reason Satya went on a full court press. They committed tremendous resources and money to an unpredictable business structure that is fundamentally not aligned with the profit motive - in its very charter.

The thing is doing exactly what the thing was supposed to do. The only reason it’s surprising to anyone is because people assume OpenAI is a for profit entity.

nicce2y ago

Let’s assume this happened. Then everyone would make everything in their power to get their old CEO back which made this possible. Oh wait.

winenbug2y ago

Ya which is why Sam should just start a new company, maybe spend a few months to catch back up but then it won't be tied down to any of this shenanigans. It's the best solution imo.

I have a feeling that's exactly what he's doing at Microsoft; at some point their "AI lab" will be spun off into a new company.

j / k navigate · click thread line to collapse

0 comments

wvenable2y ago

OpenAI is a non-profit running this commercial enterprise but they are seemingly at odds with that enterprise. Investors should rightly be very concerned about the future of their investment.

function_seven2y ago

Those investors were appropriately warned of this possibility:

> IMPORTANT

> *Investing in OpenAl Global, LLC is a high-risk investment*

> *Investors could lose their capital contribution and not see any return*

> *It would be wise to view any investment in OpenAI Global, LLC in the spirit of a donation, with the understanding that it may be difficult to know what role money will play in a post-AGI world*

I guess maybe they thought it was the same boilerplate every prospectus has?

wvenable2y ago

High-risk investments are not rare. To argue that OpenAI can do whatever they want for whatever reason because they state that it's high-risk is not how anything works.

1 more reply

cwillu2y ago

The OpenAI prominently states that any investment should be thought of as a donation. Literally in a bold pinkish-red box that describes its corporate structure.

An investor might read that and think they don't actually mean it, but you can't claim they weren't clear about the nature of any required investment.

wvenable2y ago

OpenAI explicitly created a for profit company to take these investments. It's disingenuous to reframe it as a charity.

1 more reply

superultra2y ago

I think you hit the nail on the head here. Altman himself set this structure up. The real story here is a live by the sword, die by the sword parable.

The thing is doing exactly what the thing was supposed to do. The only reason it’s surprising to anyone is because people assume OpenAI is a for profit entity.

nicce2y ago

Let’s assume this happened. Then everyone would make everything in their power to get their old CEO back which made this possible. Oh wait.

winenbug2y ago

Ya which is why Sam should just start a new company, maybe spend a few months to catch back up but then it won't be tied down to any of this shenanigans. It's the best solution imo.

I have a feeling that's exactly what he's doing at Microsoft; at some point their "AI lab" will be spun off into a new company.

j / k navigate · click thread line to collapse