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by mlinksva
3710 days ago
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> OpenAI is not a charity. https://backchannel.com/how-elon-musk-and-y-combinator-plan-... includes quote from Musk: > And as a result of a number of conversations, we came to the conclusion that having a 501c3, a non-profit, with no obligation to maximize profitability, would probably be a good thing to do. A 501c3 is a charity. Is "not a charity" inaccurate, or did OpenAI decide on some other organizational form, perhaps a trade association? |
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Generally, I think charities are understood to use most of their funds to directly support the people in need rather than spending money on administration of the charity.
By the way, non-profits are not viewed as inherently good by those within the sector,
> Charity non-profits face many of the same challenges of corporate governance which face large, publicly traded corporations. Fundamentally, the challenges arise from the "agency problem" - the fact that the management which controls the charity is necessarily different from the people who the charity is designed to benefit [2]
[1] https://www.501c3.org/public-charity-vs-private-foundation/
[2] https://en.wikipedia.org/wiki/United_States_non-profit_laws#...