4 ms·
It seemed to me the entire point of the legal structure was to raise private capital. It's a lot easier to cut a check when you might get up to 100x your princi
by ascv 3y ago
It seemed to me the entire point of the legal structure was to raise private capital. It's a lot easier to cut a check when you might get up to 100x your principal versus just a tax write off. This culminated in the MS deal: lots of money and lots of hardware to train their models.
- foota 3y agoWhat's confusing is that... open AI wouldn't ever be controlled by those that invested, and the owners (e.g., the board) aren't necessarily profit seeking. At least when you take a minority investment in a normal startup you are generally assuming that the owners are in it to have a successful business. It's just a little weird all around to me.
- quickthrower2 3y agoMicrosoft get to act as a sole distributor for the enterprise. That is quite valuable. Plus they are still in at the poker table and a few raises from winning the pot (maybe they just did!) but even without this chaos they are likely setting themselves up to be the for-profit investor if it ever transitioned to that. For a small amount of money (for MS) they get a lot of upside.