OpenAI is now set to become a Public Benefit Corporation, with its investors entitled to uncapped profit shares. Its nonprofit foundation will retain some measure of control and a 26% financial stake, in sharp contrast to its previous stronger control and much, much larger effective financial stake. The value transfer is in the hundreds of billions, thus potentially the largest theft in human history.

I say potentially largest because I realized one could argue that the events surrounding the dissolution of the USSR involved a larger theft. Unless you really want to stretch the definition of what counts this seems to be in the top two.

I am in no way surprised by OpenAI moving forward on this, but I am deeply disgusted and disappointed they are being allowed (for now) to do so, including this statement of no action by Delaware and this Memorandum of Understanding with California.

Many media and public sources are calling this a win for the nonprofit, such as this from the San Francisco Chronicle. This is mostly them being fooled. They’re anchoring on OpenAI's previous plan to far more fully sideline the nonprofit. This is indeed a big win for [...]

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Outline:

(01:38) OpenAI Calls It Completing Their Recapitalization

(03:05) How Much Was Stolen?

(07:02) The Nonprofit Still Has Lots of Equity After The Theft

(10:41) The Theft Was Unnecessary For Further Fundraising

(11:45) How Much Control Will The Nonprofit Retain?

(23:13) Will These Control Rights Survive And Do Anything?

(26:17) What About OpenAI's Deal With Microsoft?

(31:10) What Will OpenAI's Nonprofit Do Now?

(36:33) Is The Deal Done?

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Narrated by TYPE III AUDIO.

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