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
if you're not profitable, there should be no tax advantage, right?

>>abfan1+EQ
OpenAI was a 501C3. This meant donors could give money to it and receive tax benefits. The advantage is in the unique way it can reduce the funders tax bill.

>>hx8+0T
A donation is a no strings attached thing, so these donors basically funded a startup without getting any shares?

>>somedu+2U
Officially, yes, but the whole situation with Altman's firing and rehiring showed that the donors can exert quite a bit of control if their interests are threatened.

>>lolind+aV
That wasn't the donors' doing at all, though. If anything it was an illustration of the powerlessness of the donors and the non-profit structure without the force of law backing it up.

>>jprete+Pb1
Microsoft is the single largest donor by a wide margin, and they were absolutely pulling the strings in that incident.