Donations are to the non-for-profit, but now that there is a for-profit arm, private investors can purchase "stock" if you want. Share of the company that grants them some percentage of the company profit (when it eventually starts turning a profit).
And they can also resell those "shares" to other people, at whatever prices people are willing to pay for them.
The only restriction is there is a 100x cap on return. So if you paid 1 billion for your "shares", once they've returned you 100 billion as a profit percentage, or by reselling the "shares" to other people, you can't make anymore money for the profit sharing.
But if you still have "shares", you can still sell them to others at whatever price they want.
So for example, say I buy 100 shares worth 100$ each. That's worth 10k total. My cap is thus at 1 million.
Say there are 1000 shares total, that means I'm owed 10% of the profit OpenAI makes. But after making 1 million, it stops and I'm not owed anymore profit.
That said, I still have 100 "shares". They just stop returning me a percentage of the profit. But I can sell those shares to someone else at whatever price they want. So I could sell them to someone else at 200$ each. And the person that receives them is now owed profit from the percentage of share he owns up to their own cap, which for them would be based on a 200$ price, so they can make a profit return up to 100x of 200$.
Yes. But my post (and the one I replied to) are talking about Jessica's early donation to OpenAI non-profit. Did that somehow "transferred" to be shares in the for-profit or did Jessica purchased some during the transition (hence the financial interests OP accused her of)?
No, donations to the non-profit do not transfer. They're considered a donation, you get a tax right off and that's that.
I think OP is saying she is calling her investment in the for-profit arm a "donation". Which is kind of true and kind of false.
False in the sense it's not at all a donation, but having a profit cap you could see as being an unusual restriction that you could claim a normal investment wouldn't have, and so some level of generosity is involved in still choosing to invest even when there is a profit cap in place, which is there because of the non-profit nature of the parent company.
True in the sense that the for-profit arm was put into place to raise more money for the goals of the non-profit, so it is a money raising for the non-profit, but the money is raised in a for-profit way.
In that sense, she maybe can get away with calling it a "donation", even if in reality it isn't one.
Now I don't know if she actually donated to the non-profit, or she invested in the for-profit, have no clue.
But I did find it suspicious to say that you didn't "donate" because you believe in AI, but because you believed in Sam, when at the time of the non-profit, Sam wasn't CEO, and "believing in Sam" doesn't really make sense at that point. Either you believe Sam can deliver on AI innovation, which would imply your belief in Sam is indirectly because you value AI progress. Or you believe in Sam, as in, you believe he can 100x your investment and make you a bunch of money. Which if you claim you don't care about AI progress, I can only interpret you mean you believe that Sam could 100x your investment, and you didn't really care what the business venture he is using to do it is, since you think he's the key to ROI. Which would mean her "donation" are actually referring to investment in the for-profit.
And they can also resell those "shares" to other people, at whatever prices people are willing to pay for them.
The only restriction is there is a 100x cap on return. So if you paid 1 billion for your "shares", once they've returned you 100 billion as a profit percentage, or by reselling the "shares" to other people, you can't make anymore money for the profit sharing.
But if you still have "shares", you can still sell them to others at whatever price they want.
So for example, say I buy 100 shares worth 100$ each. That's worth 10k total. My cap is thus at 1 million.
Say there are 1000 shares total, that means I'm owed 10% of the profit OpenAI makes. But after making 1 million, it stops and I'm not owed anymore profit.
That said, I still have 100 "shares". They just stop returning me a percentage of the profit. But I can sell those shares to someone else at whatever price they want. So I could sell them to someone else at 200$ each. And the person that receives them is now owed profit from the percentage of share he owns up to their own cap, which for them would be based on a 200$ price, so they can make a profit return up to 100x of 200$.