1,024 karma · joined October 8, 2020
After conversion, they all own unlimited profit, unlimited return shares. A lot more valuable.
The nonprofit lost the value between the two.
- 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
This is the egregious part. Before full for profit conversion it was worth $300B. Then after $850B.
A true fiduciary would set an auction and that would set the price for for profit valuation. And then all existing investors would keep the value of their positions, but would be diluted because capped profit is worth much less than unlimited profit and residuals.
But, they sold it to themselves for a bargain basement price. The nonprofit lost out on $300B or so. Maybe more.
It was not an arm’s length transaction. It was self-dealing.
It seems the biggest value loss to the nonprofit was in this conversion, not in the initial for profit subsidiary creation giving investors capped profit shares.
Edit: actually it gets worse -- you can't start any tasks any longer in your mobile, you are required to sign in from your desktop/workstation. You can't "sign in" from your CLI.
Whoever made this, paper cuts I wish onto you. It sucks.
Edit2: actually you can ssh, so I presume that allows you to do the CLI -- and you still can do mobile first tasks, but it's not intuitive at all. Mobile first tasks you still can't pick the model, and I haven't tested the workstation connection one. That said, indeed paper cuts.
GitHub does not have any of its own models. It routes to partners like OpenAI. Just because some data is from private repos, doesn’t mean all data is flowing nor does it mean it should be trained on just because it’s being inferences on, and there is a difference on the data that was used vs. all the data from that repo, and difference between just that repo vs. all private repos. And they made it all opted in as default. Draconian.
So yes, they did set a precedent and you’re here arguing why it’s okay.
There are much better ways of finding those who have good taste.