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I would guess they’re going to put as many expenses as possible on the nonprofit. For example, all the compute used for free tiers of ChatGPT will be charged to
by whamlastxmas 2y ago
I would guess they’re going to put as many expenses as possible on the nonprofit. For example, all the compute used for free tiers of ChatGPT will be charged to the nonprofit despite being a massive benefit to the for-profit. They may even charge the training costs, which will be in the billions, to the nonprofit as well
- bubaumba 2y agoSimple tax optimization. Like new billionaires promising to significant donations. a) they don't have to donate. b) they can immediately slash those promised donations from taxes.
- rvba 2y agoHow can one slash a non existant donation from taxes?
- bubaumba 2y agoIt's a trick. If you donate something to charity you can write it off the taxes. After IPOs most new billionaires did it, including Zuk. It's enough to just promise it publicly. There is no time limit, it can take years to 'donate', but writing off is immediate. To optimize it even further they create their own dummy charities full of friends and relatives.
- vessenes 2y agoWhy do this? They lose a deduction that way.
- whamlastxmas 2y agoThey’re doing it bc they’re obligated to keep the non profit part alive for PR purposes. They have to put money there so they may as well use it how they want