I thought Ronan Farrow's investigate essay answered that pretty satisfactorily? https://www.newyorker.com/magazine/2026/04/13/sam-altman-may...
I think the Chinese labs have a fundamentally different viewpoint: they’re building infrastructure, and looking at it more like how a US corporation might like having some of its employees making core contributions to compiler ecosystems like LLVM/clang and so on. The payoff is down the road, partially reputational, but also having a great compiler is good for everyone in the computational business world. The rentier-finance capitalist instead wants to privatize the compiler and extract rents for access.
The thing about infrastructure is this: you don’t get a direct financial return on investment in infrastructure (think roads, which make other economic activity possible) unless you have some ridiculously corrupt system controlled by rent-collectors (which is how the US electricity grid and fiber optic backbone works). That’s all the major US LLM providers are doing: trying to collect rents on systems that were built using the global human knowledge base as inputs.
At the very least OpenAI should be releasing their older models on a steady timetable. Sure it might reduce some revenue streams but it would be good for their reputation.
I still wonder how much peer pressure was behind that. Like, what if you think Sam is a scumbag and you're glad he's gone, but people are waving this petition in your face. What would you do? It would be really bad for you if the emperor returned and you were one of the few who didn't sign it.
Also, going by this video, the first order of business for an AGI should be finding a cure for hair loss.
Then there seemed to come a time when all they talked about was the IBM vs. Microsoft lawsuit. From then on they must have felt that they had discovered a formula, because all they ever yapped about after was insider baseball of computer companies.
I find this sort of corp. vs. corp. coverage boring, sort of like techie reality TV. Who will be voted out tonight, Debra, or Deborah...?
This was a very large apeshit $$ amount back in IBM vs Microsoft but the scale of it now in the era of e.g. OpenAI etc is beyond imagination.
There's a whole generation of people whose association with the engineering/technology side of things only happened because of their interest in the other side of things.
I too miss old Byte magazine days.
- in 2015, OpenAI was founded as a Delaware nonprofit
- in 2017, OpenAI discovered the scaling laws and realized they needed far more compute (and thus money) than they had initially anticipated
- that discovery precipitated a series of negotiations between the founders on how to restructure OpenAI to raise more money for compute, ultimately resulting in Musk’s departure when the other founders would not give him control
- in 2018, OpenAI attempted to dramatically increase its fundraising despite Elon ending his contributions, but raised only $50M of its $100M goal
- in 2019, OpenAI created a capped-profit subsidiary in order to attract funding from commercial entities
- the nonprofit hired an independent assessor to value its IP, and then transferred that IP to the for-profit for fair value (around $60 million in 2019)
- the OpenAI nonprofit received a right to 100x capped return on its IP investment, or $6B, once the for-profit began making a profit. The nonprofit also received the right to the residual profit after all future investors reached their caps
- in 2019, OpenAI’s capped-profit received $1B in investment from Microsoft. OpenAI later received $2B from Microsoft in 2021 and $10B in 2023 as compute scaling continued
- Microsoft received a cap of 20x on its $1B investment, and 6x on its $2B and $10B investments, for a total of $92B target redemption
- in 2025, OpenAI’s for-profit entity recapitalized from a capped-profit entity with residuals flowing to the nonprofit to a traditional public benefit corporation with traditional equity
- in exchange for the residual (and 100x profit cap on the original $60M transfer) the nonprofit received a 26% equity stake in the for-profit. That stake is currently valued at around $200B
All of the above is from the record in Musk v. Altman, thanks to which we now have all the details. The upshot for the nonprofit is that it transferred IP worth around $60M in 2019 for rights to $6B in future profit, and then ended up with $200B in equity after the recapitalization. I see a lot of people in this thread assuming that the nonprofit no longer exists, which is not true.
Other than researchers, nobody from big tech would ever see themselves wanting to work at a charity / non-profit. The moment the VCs came into the picture then all the grifters poured in and AGI meant IPO.
> You can just use a favorable structure until it’s time to enrich yourself.
Maybe that diary was made out of teflon.
Western countries have been utterly strangled by nonprofits. Governments fund them with tax money in order to lobby themselves for legislation that financially benefits individuals in government and their donors. Obama even expanded the rules in the US to allow the government to unconstitutionally fund religious groups to accomplish functions that belong in government.
They should all be either reformed so that their internal bylaws and compensation are strictly regulated or probably preferably, they should simply be destroyed. If you only pay taxes on your profits (and we get rid of legal vehicles to hide profits) and your employees are obligated to pay taxes on their incomes, there's no need for a nonprofit status. If nonprofits want to engage in business (religions included), let them pay taxes. If they engage in charity, they won't have anything to tax.
It should also not surprise you that the Epstein files have not been released.
Everything is possible and not possible in a corrupted system.
Or do I forget that this guy sleeps with an Ayn Rand doll tucked under his arms?
From my point of view they are yet another big tech bros company.
> Greg explains how the original Napa offsite produced the three-step technical plan OpenAI has followed for a decade and the real reason OpenAI had to abandon its pure nonprofit structure
What was the technical plan and what was the "real reason" they couldn't achieve their original goals?
Whatever AGI is, it "AGI" is not glueing a load of text prediction machines together.