OpenAI Nonprofit Structure
The cluster discusses the relationship between non-profit and for-profit entities, focusing on OpenAI's model where the nonprofit owns and controls the for-profit subsidiary, clarifying that nonprofits can generate and retain profits without distributing them to shareholders.
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The nonprofit owns the for profit.
Non-profit doesn't mean no profit.
They are a company who’s out to make money and not a non profit, no?
Non-profit doesn't mean they don't make a profit.
This is exactly correct and so many people just don’t get it. The non-profit owns the for-profit, not the other way around. When the goals of the for-profit clash with the goals of the non-profit, the for-profit has to yield.
I know everyone nods when this is said, but is a non-profit owning a for profit entity actually a thing? Isn't the profit motive a thing that taints the transitive closure?
The non profit is the majority owner of the for profit, and there is no investor pressure here to make billions.
I thought non-profits were allowed to make money?
The problem is moreso trying to maximize profit after claiming to be a nonprofit. Profit can be a good driving force but it is not perfect. We have nonprofits for a reason, and it is shameful to take advantage of this if you are not functionally a nonprofit. There would be nothing wrong with OpenAI trying to maximize profits if they were a typical company.
Just because an org is non-profit doesn't mean that it isn't out for itself.