zlacker

>>modele+(OP)
Allowing startups to begin as non-profits for tax benefits, only to 'flip' into profit-seeking ventures is a moral hazard, IMO. It risks damaging public trust in the non-profit sector as a whole. This lawsuit is important

>>therei+4H
once it converts into profit-seeking venture, it won't get the tax benefits

one could argue that they did R&D as a non-profit and now converted to for-profit to avoid paying taxes, but until last year R&D already got tax benefits to even for-profit venture

so there really is no tax-advantage of converting a non-profit to for-profit

>>eightn+LQ
The tax advantage still exists for the investors.

>>svnt+VR
I don't believe non-profits can have investors, only donors i.e an investor by definition expects money out of his investment which he can never get out of a non-profit

only the for-profit entity of the OpenAI can have investors, who don't get any tax advantage when they eventually want to cash out