Re:OpenAI announces leadership transition
by andai on Saturday November 18, 2023 @11:09AM
(#38321023)
Then what's the point of the for-profit?
Re:OpenAI announces leadership transition
by chimeracoder on Saturday November 18, 2023 @11:20AM
(#38321163)
> Then what's the point of the for-profit?
To allow OpenAI to raise venture capital, which allows them to exchange equity for money (ie, distribute [future] rights to profit to shareholders)
The board is for the non-profit that ultimately owns and totally controls the for-profit company.
Everyone that works for or invests in the for-profit company has to sign an operating agreement that states the for-profit actually does not have any responsibility to generate profit and that it's primary duty is to fulfill the charter and mission of the non-profit.