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by tedsanders 11 days ago
The nonprofit (OpenAI Foundation) owns ~26% of the for-profit, plus some extra warrants.

The for-profit (OpenAI Group PBC) is what's filing the S-1 Draft.

The OpenAI Foundation also exclusively appoints the board of the OpenAI Group PBC and can replace directors at any time.

https://openai.com/our-structure/

(I work at OpenAI, but I am not a lawyer and am not speaking on behalf of OpenAI - just sharing my personal understanding.)
2 comments
ncruces 11 days ago
> The OpenAI Foundation also exclusively appoints the board of the OpenAI Group PBC and can replace directors at any time.

Isn't it hard to write this with a straight face?

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to11mtm 11 days ago
If they truly wanted it to be in the benefit of the not-for-profit and safe from interference, the ownership by the foundation would be much closer to or just over 50%.... just thinking out loud...
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chippiewill 11 days ago
The magic 50% ownership isn't relevant for that purpose. There are special provisions which means that the Foundation effectively exerts full control over the company because it appoints the entire board.
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