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
But it keeps the intangible benefits it accrued by being ostensibly non-profit, and that can easily be worth the money paid in taxes.

Otherwise, why do you think OpenAI is doing it?

>>andrew+hS
What benefits? What taxes?

Honestly it does not sound like anyone here knows the first thing about non-profits.

OAI did it because they want to raise capital so they can fund more towards building agi.