alt Hacker NewsNadella had OpenAI by the short and curlies early on. But all I've seen from him in the last couple of years is continuously acquiescing to OpenAI's demands. I wonder why he's so weak and doesn't exert more control over the situation? At one point Microsoft owned 49% of OpenAI but now it's down to 27%?
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They had to negotiate away the non-profit structure of OpenAI. Sam used that as a marketing and recruiting tool, but it had outlived that and was only a problem from then on.
For OAI to be a purely capitalist venture, they had to rip that out. But since the non-profit owned control of the company, it had to get something for giving up those rights. This led to a huge negotiation and MSFT ended up with 27% of a company that doesn’t get kneecapped by an ethical board.
In reality, though, the board of both the non-profit and the for profit are nearly identical and beholden to Sam, post–failed coup.
> Nadella had OpenAI by the short and curlies early on
Looks like Nadella is slowly realizing that it is his short and curlies that are in the vice grip in the "If you owe the bank $100 vs $100M" sense?
If Sam continues doing Sam things, MS might get 0% of OpenAI if Satya insists on the previous contract. Either by closing up OpenAI and opening up OpaenAI and/or by MS suing it out of existence. It’s all about what MS can get out of it. If they can get 27% of something rather than nothing, they’re better off.
Why would they acquire more when company is still not making profit ? To be left with bigger bag ?
Everything is personal preference, and perhaps I am more fiscally conservative because I grew up in poverty.
But if I own 49% of a company and that company has more hype than product, hasn't found its market yet but is valued at trillions?
I'm going to sell percentages of that to build my war chest for things that actually hit my bottom line.
The "moonshot" has for all intents and purposes been achieved based on the valuation, and at that valuation: OpenAI has to completely crush all competition... basically just to meet its current valuations.
It would be a really fiscally irresponsible move not to hedge your bets.
Not that it matters but we did something similar with the donated bitcoin on my project. When bitcoin hit a "new record high" we sold half. Then held the remainder until it hit a "new record high" again.
Sure, we could have 'maxxed profit!'; but ultimately it did its job, it was an effective donation/investment that had reasonably maximal returns.
(that said, I do not believe in crypto as an investment opportunity, it's merely the hand I was dealt by it being donated).