I'm not sure if Mr. A has all the details right but I do know the transformation doesn't happen very often.
Marc Andreessen says that transitioning from a nonprofit to a for-profit like OpenAI is seeking to do is usually constrained by federal tax law and other legal regimes and historically when you appropriate a non-profit for personal wealth, you go to jail.
— Tsarathustra (@tsarnick) December 27, 2024
Transitions of this… pic.twitter.com/KnH7vebxGy
Marc Andreessen says that transitioning from a nonprofit to a for-profit like OpenAI is seeking to do is usually constrained by federal tax law and other legal regimes and historically when you appropriate a non-profit for personal wealth, you go to jail.
Transitions of this type do happen, but it would involve buying the nonprofit for its market value: $150 billion in cash.
