[HN Gopher] Sam Altman owns OpenAI's venture capital fund
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       Sam Altman owns OpenAI's venture capital fund
        
       Author : choppaface
       Score  : 204 points
       Date   : 2024-02-15 19:45 UTC (3 hours ago)
        
 (HTM) web link (www.axios.com)
 (TXT) w3m dump (www.axios.com)
        
       | peteradio wrote:
       | WeWork vibes
        
         | medion wrote:
         | Indeed indeed.
        
         | pluc wrote:
         | WeAI would arguably be a much better name
        
       | adamnemecek wrote:
       | Now it's clear why he owns no OpenAI stock. I'm sensing a rug
       | pull.
        
       | esalman wrote:
       | Gary Marcus was trying to bring it up a while ago:
       | https://x.com/GaryMarcus/status/1731375497458987351?s=20
        
         | adamnemecek wrote:
         | Even a broken clock is right twice a day.
        
       | bane wrote:
       | I'm _starting_ to get the feeling that there might be shenanigans
       | going on around Sam Altman.
       | 
       | Next thing you know, we're going to find out that his name isn't
       | even Sam Altman, OpenAI isn't open, and all the workers have been
       | replaced with robots a la Disney's Black Hole movie from the
       | 1980s.
        
         | nativeit wrote:
         | I don't know if I should be telling you this, but Sam Altman's
         | real name is Astronaut George Santos.
        
           | Mtinie wrote:
           | _THE_ George Santos, who recently quarterbacked the Super
           | Bowl winning KC Chiefs? Damn. That guy gets around.
        
           | messe wrote:
           | Any relation to a Mike Dexter?
        
         | tiffanyh wrote:
         | Read this Reddit thread from 8-years ago.
         | 
         | https://old.reddit.com/r/AskReddit/comments/3cs78i/whats_the...
         | 
         | Sam even acknowledges past shenanigans.
        
           | re wrote:
           | When did Conde Nast/Advance Publications lose majority
           | shareholder status for Reddit? That comment discusses it
           | happening in 2015, but I've seen mixed citations for later
           | dates, some claiming it still holds a majority stake.
           | 
           | 2017: https://www.vox.com/2017/7/31/16037126/reddit-
           | funding-200-mi...
           | 
           | 2023: https://www.cnbc.com/2023/06/01/reddit-eyeing-ipo-
           | charge-mil...
           | 
           | 2024:
           | https://www.forbes.com/sites/tylerroush/2024/01/18/reddit-
           | pl...
           | 
           | On the other hand, Wikipedia claims without source that AP
           | has a 30% stake in Reddit:
           | https://en.wikipedia.org/wiki/Advance_Publications
        
         | codeflo wrote:
         | Anonymous source close to the OpenAI situation, according to
         | the Financial Times: "His superpower is getting people onside,
         | shaping narratives, pushing situations into the shape that work
         | for him."
         | 
         | Paul Graham: "Sam is extremely good at becoming powerful."
        
           | hn_throwaway_99 wrote:
           | Yeah, trying to read between the lines of what pg has
           | said/written about sama (and obviously I'm just some rando
           | bullshitting, so what do I know) it seems like he is
           | genuinely in awe of a lot of Sam's capabilities, but he also
           | has some real concerns about his ethics (e.g. when the report
           | came out relatively recently that Sam was fired as YCom
           | president).
           | 
           | Given this background, while I might normally take the
           | comment that "We wanted to get started quickly and the
           | easiest way to do that due to our structure was to put it in
           | Sam's name" at face value, there has been enough past
           | shenanigans that I don't buy that.
        
             | boringg wrote:
             | Well there is the whole debacle last year at openAI. Im
             | starting to get those weird vibes and his history is a bit
             | spotty.
        
           | archy_ wrote:
           | It really is impressive how some people seem to be able to
           | embed themselves so well in an industry. Not many people have
           | the drive to pull it off, even fewer have the circumstances.
        
         | robofanatic wrote:
         | Is he himself the 1 person unicorn
         | 
         | https://fortune.com/2024/02/04/sam-altman-one-person-
         | unicorn...?
        
         | foxmoss wrote:
         | Next thing to comes out is that Sam Altman never headed Y
         | Combinator.
        
       | neilv wrote:
       | > _" We wanted to get started quickly and the easiest way to do
       | that due to our structure was to put it in Sam's name," an OpenAI
       | spokesperson tells Axios. "We have always intended for this to be
       | temporary."_
       | 
       | Is some journalist mapping out all the financials, governance
       | structures, and history of OpenAI, and can explain to the rest of
       | us what it all means?
       | 
       | Maybe especially interesting would be determining the intentions
       | of each of the various founders and funders.
       | 
       | (I have different snap reactions to some individual and company
       | names involved, based on other history, but know little of their
       | intentions with OpenAI specifically.)
        
         | rvnx wrote:
         | Well, understanding intentions in few words:
         | 
         | Andrej Karpathy was the smart and nice guy of OpenAI, and he is
         | not there anymore.
        
           | neilv wrote:
           | My own snap assessments would be somewhat different. I'd like
           | to understand the reality in detail, and with much more
           | confidence than my own gut.
        
         | ra7 wrote:
         | Matt Levine has tried to in his own inimitable style:
         | 
         | https://www.bloomberg.com/opinion/articles/2023-11-20/who-co...
         | 
         | https://www.bloomberg.com/opinion/articles/2023-12-11/openai...
        
           | pinkmuffinere wrote:
           | (https://archive.is/drJgZ and https://archive.is/cqqY4
           | respectively)
        
           | RhysU wrote:
           | Now I want ChatLevine, an AI filter that turns everything
           | into Matt Levine's writing style.
        
       | datadrivenangel wrote:
       | Can't make money in your non-profit? Just self-deal and have
       | another business that you can make money on!
       | 
       | Often illegal to do this too egregiously.
        
         | CamelCaseName wrote:
         | Hasn't stopped anyone before.
         | 
         | I'm still waiting for Elon to get reamed over SolarCity. Oh
         | wait, he never will, and will strong arm the company into
         | giving him another 12% of TSLA.
        
           | boringg wrote:
           | SolarCity? Tsla saved them when he rolled them into Tesla.
           | Anyone who picked up TSLA shares from that purchase did
           | significantly better than they ever would have as solarcity.
        
             | debacle wrote:
             | He might be talking about the subsidy deal with NYS that
             | imploded.
        
           | azemetre wrote:
           | If the board allows it, why should the public care? Aren't
           | self imploding companies good for the economy? It allows
           | newer ones to fulfill their place.
        
         | chinchilla2020 wrote:
         | It's the oldest trick in the book.
         | 
         | The nonprofit doesn't pay taxes. Nonprofit buys it's supplies
         | from a for-profit. You mark up the supplies and buy them from
         | the for-profit.
         | 
         | Organize costs so that the for-profit incurs all the costs and
         | the non-profit gets most of the revenue.
        
           | bugglebeetle wrote:
           | This is almost certainly a form of securities fraud, however.
        
             | voakbasda wrote:
             | That only matters if the government has the ability to
             | prosecute it successfully, but I would posit that most
             | fraud does not even get investigated.
        
             | jmalicki wrote:
             | This is how IKEA has been operating forever.
             | 
             | https://www.investopedia.com/articles/investing/012216/how-
             | i....
        
           | ensignavenger wrote:
           | What exactly would that accomplish? The For Profit would have
           | to pay a ton of taxes on all that revenue if the non-profit
           | incurred all the costs!
        
             | lupire wrote:
             | Net revenue minus taxes is profit.
        
       | russdpale wrote:
       | yet people around here have their heads so far up the ass of tech
       | utopia that they worship this fool.
        
         | jdmoreira wrote:
         | Not sure 'fool' means what you think it means. This guy is
         | anything but a fool.
        
           | dgfitz wrote:
           | It's just a nice way of saying "motherfucker" I can't imagine
           | you don't understand this.
        
           | goodluckchuck wrote:
           | It depends what definition you use. According to Webster's a
           | fool is "a cold dessert of pureed fruit mixed with whipped
           | cream or custard."
        
         | dang wrote:
         | Ok, but please don't post like this to Hacker News
         | (irrespective of topic or person). We're trying for something
         | else here.
         | 
         | https://news.ycombinator.com/newsguidelines.html
        
       | totaldude87 wrote:
       | During a meeting with Neumann, he scribbled out a vision for a
       | company worth $10 trillion."
       | 
       | ||Sam Altman's $7 Trillion 'Moonshot'
       | 
       | "Adam also owned the rights to the 'We' trademark, which the firm
       | decided they must own and paid the founder/CEO $US5.9 million for
       | the rights.
       | 
       | ||Sam Altman owns OpenAI's venture capital fund
       | 
       | not saying this is apples to apples, but go on...
        
         | infecto wrote:
         | Not even apple to oranges....that is an apple to automobiles
         | comparison.
        
       | Lionga wrote:
       | Scam Altman doing what he does best.
        
         | dang wrote:
         | Please don't post unsubstantive comments.
         | 
         | You may not owe $celebrity or $billionaire better, but you owe
         | this community better if you're participating in it.
         | 
         | https://news.ycombinator.com/newsguidelines.html
        
           | Alifatisk wrote:
           | Amen
        
       | debacle wrote:
       | Parallels to Twitter pre-Musk. Altman has been controversial
       | since his days (literally) as Reddit CEO. Yishan had some
       | thoughts on X about the shake up at OpenAI and how they relate to
       | Sam (and Microsoft).
       | 
       | The capital class prefers hungry young sociopaths with flexible
       | morals. I don't know Sam, so I can't say that he's a sociopath,
       | but he certainly is hungry and the morals seem flexible.
        
         | FireBeyond wrote:
         | Well, there was also the opaque manner in which he overnight
         | departed YC, too.
        
         | LoFiSamurai wrote:
         | What's this about him being CEO of Reddit? I'm not seeing that
         | anywhere.
        
           | reducesuffering wrote:
           | Yishan: https://old.reddit.com/r/AskReddit/comments/3cs78i/wh
           | ats_the...
           | 
           | Sam Altman: https://old.reddit.com/r/AskReddit/comments/3cs78
           | i/whats_the...
        
       | shrubble wrote:
       | Barring some kind of life-changing event (religious conversion,
       | serious accident, birth of a child, etc.), people tend to
       | continue on the path they were on before.
       | 
       | I don't know enough about Altman's previous business dealings to
       | judge, but is this part of a pattern of behavior?
        
         | notahacker wrote:
         | I think the main pattern of behaviour here is that someone who
         | realized the idealists around him believed he was switching to
         | a profit model and licensing their tech to Microsoft out of
         | _philanthropic intent_ ended up assuming that they (and others)
         | would be dumb enough to swallow the idea a $175m venture
         | capital fund quietly spun off what is now the world 's most-
         | hyped company gave him full control and all the profits out of
         | lack of resource to figure out any other arrangements...
        
           | Chinjut wrote:
           | I am having tremendous difficulty parsing this sentence.
        
             | notahacker wrote:
             | I removed a superfluous word, but it still isn't winning a
             | Pulitzer Prize :-)
        
         | johneth wrote:
         | > I don't know enough about Altman's previous business dealings
         | to judge
         | 
         | He's involved in the eye scanning shitcoin 'Worldcoin'.[0]
         | Personally, I assume anyone involved in crypto has suspicious
         | motives at best.
         | 
         | [0] https://en.wikipedia.org/wiki/Worldcoin
        
       | outside1234 wrote:
       | Scam Altman strikes again
        
       | fritzo wrote:
       | Seems like a great way incentivize the CEO to prioritize
       | developer experience. Maybe Google could follow a similar
       | incentive plan to improve Gemini developer experience.
        
       | tw04 wrote:
       | I find it interesting they keep saying "small investment". What
       | does that mean? By all accounts Andy Bechtolsheim made a "small
       | investment" in Google, and it turned him into a billionaire. Even
       | back then $100k was a rounding error in funding for a startup.
       | 
       | I don't care if someone thinks the amount invested was small, I
       | care how much equity that investment resulted in.
        
       | Havoc wrote:
       | What of it? The guy is allowed to own stuff.
       | 
       | And at 175m commit it isn't even that big of a fund.
       | 
       | Also not entirely convinced the author knows what a fund is.
       | 
       | >It always had outside limited partners
       | 
       | >it's legally owned by Altman.
       | 
       | He controls the GP but there are at least 14 LPs. That's not what
       | I'd call "own".
       | 
       | https://www.sec.gov/Archives/edgar/data/1877240/000187724023...
        
         | ensignavenger wrote:
         | I can't even find any evidence to back the claim the Altman
         | owns it... he is listed in that SEC filing you linked to lists
         | him as the manager of the general partner. As CEO of OpenAI, it
         | is exactly what I would expect to see on such a filing. The
         | Axios article provides no source at all.
         | 
         | It appears to be a big nothing-sandwich or maybe some sort of
         | conspiracy to manufacture a conspiracy or something...
        
       | bigbuppo wrote:
       | Isn't that the FTX guy? Didn't think they would ever let him
       | anywhere close to finance again.
        
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       (page generated 2024-02-15 23:01 UTC)