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by notatoad 1023 days ago
unless i'm missing something, they're not taking equity. that's what makes it a grant, and not seed funding.

what math should i be doing here?

1 comments

Probably the grants have clauses that convert them to debt or equity in case of a transition of the company. [0]

The bigger math is significance_of_contribution = $size_ai_grant_program/$size_ai_vc_program (or maybe $size_ai_grant_program - $size_ai_vc_program)

[ 0 https://link.springer.com/chapter/10.1007/978-3-030-72428-3_... ]

They state the nature of their support in very clear terms:

"We’ll support a small group of open source developers through grant funding (not an investment or SAFE note), giving them the opportunity to continue their work without the pressure to generate financial returns."

Some of the recipients of financial support have described the nature of the agreement as well.

> a16z didn't ask for any equity or any kind of quid pro quo, other than to let folks know that they provided this grant.

Ok so it is just marketing spend, and buying the relationships then.
You could choose to interpret it as marketing spend or "buying relationships", sure. For me, there's enough negativity in the world - I don't want to spend time imagining more.

And why would I? A16Z have already explicitly stated their intent: "a thriving open source ecosystem is essential to building [ai's] future" and "We’ll support a small group of open source developers through grant funding (not an investment or SAFE note), giving them the opportunity to continue their work without the pressure to generate financial returns."

There's not a lot of spin on this. They want to be a leader in AI so they're investing in the people who build the tools that they use in pursuit of their commercial goals.

if you don't have a source for your claim it's as valid as i'm claiming that you are a stegosaurus.
Almost, but I qualified it with probably, and also if I was a stegosaurus I couldn’t be presently alive on earth, or understand language, or type.