zlacker

>>fnbr+(OP)
The only way I can see this being a valid contract is if the equity grant that they get to keep is a new grant offered the time of signing the exit contract. Any vested equity given as compensation for work could not then be offered again as consideration for signing a new agreement.

Maybe the agreement is "we will accelerate vesting of your unvested equity if you sign this new agreement"? If that's the case then it doesn't sound nearly so coercive to me.

>>jp57+Ft
My initial reaction was "Hold up - your RSUs vest, you sell the shares and pocket the cash, you quit OpenAI, a few years later you disparage them, and then when? They somehow try and claw back the equity? How? At what value? There's no way this can work." Then I remembered that OpenAI "equity" doesn't take the form of an RSU or option or anything else that can be converted into an actual share ever. What they call "equity" is a "Profit Participation Unit (PPU)" that once vested entitles you to a share of their profits. They don't share the equivalent of a Cap Table with employees, so there's no way to tell what sort of ownership interest a PPU represents. And of course, it's unlikely OpenAI will ever turn a profit (which if they did would be capped anyway). So this is all just play money anyway.

>>DebtDe+aD
This is wrong on multiple levels. (to be clear I don't work at OAI)

> They don't share the equivalent of a Cap Table with employees, so there's no way to tell what sort of ownership interest a PPU represents

It is known - it represents 0 ownership share. They do not want to sell any ownership because their deal with MS gives MS 49% ownership and they don't want MS to be able to buy up additional stake and control the company.

> And of course, it's unlikely OpenAI will ever turn a profit (which if they did would be capped anyway). So this is all just play money anyway.

Putting aside your unreasonable confidence that OAI will never be profitable, the PPUs are tender offered so they can be sold to institutional investors up to a very high limit, OAIs current tender offer round values them at ~$80b iirc

>>whimsi+3H
You're not saying anything that in any way contradicts my original post. Here, I'll simplify it - OpenAI's PPUs are not in any sense of the word "equity" in OpenAI, they are simply a subordinated claim to an unknown % of a hypothetical future profit.