4 ms·

Profit? It's a 501(c).

static_motion 3y ago
Depends if you're talking about "OpenAI, Inc." (non-profit) or "OpenAI Global, LLC" (for profit corporation). They're both under the same umbrella corporation.
dragonwriter 3y ago
The parent is, OpenAI Global, LLC is a for profit non-wholly-owned subsidiary with outside investors; there's also OpenAI LP, which is a for-profit limited partnership with the no profit as general partner, also with outside investors (I thought it was the predecessor of the LLC, but they both seem to have been formed in 2019 and still exist?) OpenAI has for years been a nonprofit shell around a for-profit firm. EDIT: A somewhat more detailed view of the structure, based on OpenAI’s own description, is at https://news.ycombinator.com/item?id=38312577 https://news.ycombinator.com/item?id=38312577
- mrandish 3y ago
  Thanks for explaining the basic structure. It seems quite opaque and probably designed to be. It would be nice if someone can determine which entities he currently still has a position or equity in. Since this news managed to crush HN's servers it's definitely a topic of significant interest.
matwood 3y ago
A non-profit can make plenty of profit, there just aren't any shareholders.
ChuckMcM 3y ago
As someone who is the Treasurer/Secretary of a 501(c)(3) non-profit I can tell you that is it always possible for a non-profit to bring in more revenue than it costs to run the non-profit. You can also pay salaries to people out of your revenue. The IRS has a bunch of educational material for non-profits[1], and a really good guide to maintaining your exemption [2]. [1] https://www.irs.gov/charities-non-profits/publications-for-exempt-organizations https://www.irs.gov/charities-non-profits/publications-for-e... [2] https://www.irs.gov/pub/irs-pdf/p4221pc.pdf https://www.irs.gov/pub/irs-pdf/p4221pc.pdf
- deleted 3y ago
  [deleted]
- hbarka 3y ago
  Yes. Kaiser Permanente is a good example to illustrate your point. Just Google “Kaiser Permanente 501c executive salaries white paper”.
achenatx 3y ago
NFL was a non profit up until 2015ish

Depends if you're talking about "OpenAI, Inc." (non-profit) or "OpenAI Global, LLC" (for profit corporation). They're both under the same umbrella corporation.

dragonwriter 3y ago

The parent is, OpenAI Global, LLC is a for profit non-wholly-owned subsidiary with outside investors; there's also OpenAI LP, which is a for-profit limited partnership with the no profit as general partner, also with outside investors (I thought it was the predecessor of the LLC, but they both seem to have been formed in 2019 and still exist?) OpenAI has for years been a nonprofit shell around a for-profit firm. EDIT: A somewhat more detailed view of the structure, based on OpenAI’s own description, is at https://news.ycombinator.com/item?id=38312577 https://news.ycombinator.com/item?id=38312577

mrandish 3y ago
Thanks for explaining the basic structure. It seems quite opaque and probably designed to be. It would be nice if someone can determine which entities he currently still has a position or equity in. Since this news managed to crush HN's servers it's definitely a topic of significant interest.

matwood 3y ago

A non-profit can make plenty of profit, there just aren't any shareholders.

ChuckMcM 3y ago

As someone who is the Treasurer/Secretary of a 501(c)(3) non-profit I can tell you that is it always possible for a non-profit to bring in more revenue than it costs to run the non-profit. You can also pay salaries to people out of your revenue. The IRS has a bunch of educational material for non-profits[1], and a really good guide to maintaining your exemption [2]. [1] https://www.irs.gov/charities-non-profits/publications-for-exempt-organizations https://www.irs.gov/charities-non-profits/publications-for-e... [2] https://www.irs.gov/pub/irs-pdf/p4221pc.pdf https://www.irs.gov/pub/irs-pdf/p4221pc.pdf

deleted 3y ago
[deleted]
hbarka 3y ago
Yes. Kaiser Permanente is a good example to illustrate your point. Just Google “Kaiser Permanente 501c executive salaries white paper”.

achenatx 3y ago

NFL was a non profit up until 2015ish