[duchenne]

But, if the non-profit gives all its assets to the new legal entity, shouldn't the new legal entity be taxed heavily? The gift tax rate goes up to 40% in the US. And 40% of the value of openAI is huge.

[baking]

A non-profit can't give away its assets to a private entity, but it can exchange its assets for fair value, in this case, equity in the for-profit.

[SkyPuncher]

You don't need to sell/give the assets away to allow the for-profit to use them.

You sign an exclusive, non-revocable licensing agreement. Ownership of the original IP remains 100% with the original startup.

Now, this only works if the non-profit's board is on-board.