> "We believe an OpenAI-P owned by Elon is fundamentally against our mission."
But OpenAI-P of course wouldn't be owned by Elon, he would just own $40B worth of OpenAI-P according to their own valuation of it. A tiny minority stake of the $157B enterprise.
OpenAI-NP, could just go back to other OpenAI investors and buy back their "$40B" stake plus have $57B leftover to apply to AI safety. Silly Elon, overpaying by almost 2.5X for something of such little value!
It's a hard point that they would likely have to make in court! Harder still with Elon having originally been involved in founding OpenAI-NP.
Everyone hates Elon reasonably but few people seem to care the Sam Altman is conducting a theft on the order of $57+B.
The issue isn't OpenAI-NP having some stake (which will obviously be the case no matter what), it's Elon having some stake.
If OpenAI-NP has a reasonable case to believe that Elon will be a bad steward of the technology and work against their charter (https://openai.com/charter/), they shouldn't sell to him, even if his offer is more than another. Unlike a normal board, the duty-to-shareholder isn't the only duty, a hostile buyout like with twitter doesn't necessarily work.
> But OpenAI-P of course wouldn't be owned by Elon, he would just own $40B worth of OpenAI-P according to their own valuation of it. A tiny minority stake of the $157B enterprise.
IDK, Musk's offer is apparently for the nonprofit, not for a partial interest in the not-yet-extant for-profit subsidiary.
> If OpenAI-NP has a reasonable case to believe that Elon will be a bad steward of the technology and work against their charter (https://openai.com/charter/), they shouldn't sell to him, even if his offer is more than another. Unlike a normal board, the duty-to-shareholder isn't the only duty, a hostile buyout like with twitter doesn't necessarily work
If the OpenAI-NP board sees such existential risk from a change in leadership of OpenAI-P, how can they in good faith eschew control of it? By removing themselves from control, they would see the exact same risk anyhow. Elon could make a tender offer for the private for-profit entity that its board would be bound to accept in its fiduciary duty to shareholders. Plus, they would have to make the case that both Elon is specifically bad AND that he's so bad that it's not worth having $57B more to deploy for their AI goals. What's more, you would have to consider whether or not preventing Elon from controlling OpenAI even prevents whatever risk you see from Elon as he is already building xAI in parallel.
> IDK, Musk's offer is apparently for the nonprofit, not for a partial interest in the not-yet-extant for-profit subsidiary.
You can't buy a non-profit. It's their assets he's trying to buy. If OpenAI-NP values their OpenAI-P claims at $40B then that's what Elon would own according to their own beliefs.
> If the OpenAI-NP board sees such existential risk from a change in leadership of OpenAI-P, how can they in good faith eschew control of it? By removing themselves from control, they would see the exact same risk anyhow. Elon could make a tender offer for the private for-profit entity that its board would be bound to accept in its fiduciary duty to shareholders.
They can make the argument that this offer is not in good faith and that Elon would not make an equivalent offer on an open market. That is, Elon's purpose in this offer is to prevent the sale of OpenAI, not to actually acquire it. Perhaps one could get around this if the cash were put in escrow, but also Elon likely doesn't have 100B in cash and it appears part of the valuation that Elon is putting up is x.ai, so it's quite reasonable to say that x is overvalued in this deal and that it isn't really 90B anyway.
> You can't buy a non-profit. It's their assets he's trying to buy. If OpenAI-NP values their OpenAI-P claims at $40B then that's what Elon would own according to their own beliefs.
From what I can gather you're just mistaken here, Elon seems to be offering 100B for the thing recently valued at 157B (per https://archive.is/59jZ5#selection-637.0-648.0), while what is being sold for 40B is not the entire $157B entity.
Either that, or elon really is getting a controlling interest, and then the argument about Elon being a terrible steward still applies.
> They can make the argument that this offer is not in good faith and that Elon would not make an equivalent offer on an open market.
Yes this an angle they could take. This would probably be a huge mistake. By doing this they would in part be conceding that it's a worthwhile offer to be made and Elon also is likely more than able to acquire the funds.
> From what I can gather you're just mistaken here,
I'm not. You and WaPo are. For one, it should be obvious that that's the case otherwise this offer would be worthless since it's less than the $157B most recent valuation. There would be no point in discussing any of this and everyone would be laughing at Elon. For another, here's the original reporting from the WSJ which is unsurprisingly much clearer: https://archive.is/stI0V
But OpenAI-P of course wouldn't be owned by Elon, he would just own $40B worth of OpenAI-P according to their own valuation of it. A tiny minority stake of the $157B enterprise.
OpenAI-NP, could just go back to other OpenAI investors and buy back their "$40B" stake plus have $57B leftover to apply to AI safety. Silly Elon, overpaying by almost 2.5X for something of such little value!
It's a hard point that they would likely have to make in court! Harder still with Elon having originally been involved in founding OpenAI-NP.
Everyone hates Elon reasonably but few people seem to care the Sam Altman is conducting a theft on the order of $57+B.