It says that “many potential investors in OpenAI’s recent funding rounds declined to invest” due to its unusual governance structure — directly contradicting Bloomberg’s earlier reporting that OpenAI’s October round was “oversubscribed.”
Nitpick: I don’t think that’s a contradiction. The October round could have been oversubscribed (people wanted to buy more ownership than OpenAI was willing to sell) even though some investors balked.
And anyway, I think the real complaint OpenAI made in that quoted paragraph is:
the investments that OpenAI was able to secure are conditioned on near-term structure changes.
which has been widely reported already. They were able to get the investment they wanted, but only by promising structural changes to the company.
You’re right that contradicted is too strong a word here, though I think OpenAI’s new claim does cast doubt on the earlier reported claim.
I think the fact that investors appear to be fine with this new arrangement is the biggest tell that it’s not a very significant change from the original plan. OpenAI’s nonprofit mission is to ensure AGI benefits humanity, not that it be the first to build it. Legally, the organization has to show that its charitable purpose isn’t changing or that it has a sufficient justification to change it.
There’s more context in my past coverage of the restructuring effort.
Nitpick: I don’t think that’s a contradiction. The October round could have been oversubscribed (people wanted to buy more ownership than OpenAI was willing to sell) even though some investors balked.
And anyway, I think the real complaint OpenAI made in that quoted paragraph is:
which has been widely reported already. They were able to get the investment they wanted, but only by promising structural changes to the company.
You’re right that contradicted is too strong a word here, though I think OpenAI’s new claim does cast doubt on the earlier reported claim.
I think the fact that investors appear to be fine with this new arrangement is the biggest tell that it’s not a very significant change from the original plan. OpenAI’s nonprofit mission is to ensure AGI benefits humanity, not that it be the first to build it. Legally, the organization has to show that its charitable purpose isn’t changing or that it has a sufficient justification to change it.
There’s more context in my past coverage of the restructuring effort.