zlacker

Was OpenAI ever a non-profit? From my understanding, it was a capped for-profit company. They had a cutoff for how much they could make but that does not make them a non-profit.

Have they reached that cap yet? I highly doubt, if anything they are still well in the negative.

>>chirau+(OP)
It’s still technically a nonprofit, they just created a (capped) for-profit subsidiary with the nonprofit as the sole controlling shareholder. This was done so it could bring in enough money through VC to pay competitive salaries while supposedly meaning the for-profit section will still be responsible for following the nonprofit’s founding charter.

That last part seems to be what has failed with the big question I have being what in that setup wasn’t done correctly such that the current reality wasn’t prevented.