zlacker

Who fires the board at a 501.3c?

>>chasd0+(OP)
They resign under public pressure, I guess?

>>chasd0+(OP)
I absolutely guarantee you when Microsoft owns 50% that they paid $50,000,000,000 for, that Microsoft is really in charge.

The board and Ilya will all be gone within a month.

>>chasd0+(OP)
In that case, Microsoft

>>Iv+r3
Microsoft own stake in the for-profit company. They do not have a stake in the non-profit. The for-profit is in majority owned by the non-profit org.

>>andrew+H2
Via what mechanism?

>>mirzap+a2
Why would they if they are advancing the goals of the non-profit and Altman was endangering that goal?

>>andrew+H2
They're not. They don't have board seats. The mission-driven founders of Open AI were very serious about ensuring this.

>>andrew+H2
That makes very little sense. Microsoft spent the last week enthusing about the leadership and vision of OpenAI and their strong partnership, even in Nadella’s keynote speech at the Ignite conference. It’s Microsoft’s biggest event of the year. This makes them look pretty stupid, and the announcement came before market closing hours on a Friday, which put in dent in their share price.

However, I would not be surprised if Microsoft take advantage of this unexpected situation for their gain.

>>andrew+H2
https://openai.com/our-structure

Microsoft doesn't even own a majority stake in the for-profit, much less anything at all in the non-profit that ultimately controls everything.

>>jessri+w8
with the amount they paid, how did they not get a seat in the board?

>>thawab+0c
They did not ever have the possibility of one but decided that their investment was still worth the return.

We can debate whether or not that was wise of them, but because of the charter and structure of OpenAI it was never on the table.

>>Raston+m7
Hahaha "advancing the goals of non profit" right after making billions.

All of a sudden their amnesia stopped huh?

Hypocrites and virtue signallers, the whole board.

>>jdthed+Ae
I mean, the board doesn't have equity and the for-profit subsidiary is profit capped

>>Raston+Kf
They still stand to benefit personally, do they not?

>>jdthed+5g
By what mechanism? 3/4ths the remaining board have no financial interests in OpenAI.

>>cthalu+3j
Personal/moral: "Championing" non-profit after reaping the fruits of massive commercial success

Monetary: Promotions and payouts (now or future)? Equity is not the only way

>>jdthed+Nj
Is it a massive commercial success? They have received significant funding, and likely have high revenue, but is it profitable? Is it in a position to be profitable? We're not in the world of companies getting decades of runway from VCs anymore, between concerns around a recession (justified or not), higher interest rates, etc.

There's rapidly becoming more and more competitors in this space, as well. OpenAI has a significant first-mover advantage, but I don't know that it is insurmountable, and I doubt investors are confident that it is either. That means they're even less likely to have infinite runway.

So I'm not sure there's personal/moral success at this point in the story for the board to begin with.

Monetary - 3/4ths the board is independent. They are not actually employed by OpenAI. There's nothing to promote them to, and nothing in the charter of the non-profit that would give them payouts.

>>jdthed+Ae
They do need billions to train the next generation models though

>>andrew+H2
To all the commenters in this thread, here we are a few days later.....

https://www.bloomberg.com/news/articles/2023-11-19/openai-ne...

OpenAI Negotiations to Reinstate Altman Hit Snag Over Board Role

    OpenAI’s leaders want board removed, but directors resisting
    Microsoft’s Nadella leading high-stakes talks on Altman return

Sam Altman

Photographer: Joel Saget/AFP/Getty Images Have a confidential tip for our reporters? Get in Touch Before it’s here, it’s on the Bloomberg Terminal LEARN MORE By Emily Chang, Edward Ludlow, Rachel Metz, and Dina Bass November 20, 2023 at 7:17 AM GMT+11 Updated on November 20, 2023 at 7:47 AM GMT+11

A group of OpenAI executives and investors racing to get Sam Altman reinstated to his role as chief executive officer have reached an impasse over the makeup and role of the board, according to people familiar with the negotiations. The decision to restore Altman’s role as CEO could come quickly, though talks are fluid and still ongoing.

At midday Sunday, Altman and former President Greg Brockman were in the startup’s headquarters, according to people familiar with the matter.

OpenAI leaders pushing for the board to resign and to reinstate Altman include Interim CEO Mira Murati, Chief Strategy Officer Jason Kwon and Chief Operating Officer Brad Lightcap, according to a person with knowledge of the discussions. foundering_tout

Altman, who was fired Friday, is open to returning but wants to see governance changes — including the removal of existing board members, said the people, who asked not to be identified because the negotiations are private. After facing intense pressure following their decision to fire Altman Friday, the board agreed in principle to step down, but have so far refused to officially do so. The directors have been vetting candidates for new directors.

At the center of the high-stakes negotiations between the executives, investors and the board is Microsoft Corp. CEO Satya Nadella. Nadella has been leading the charge on talks between the different factions, some of the people said. Microsoft is OpenAI’s biggest investor, with $13 billion invested in the company.