This is the full text of a post from "The Obsolete Newsletter," a Substack that I write about the intersection of capitalism, geopolitics, and artificial intelligence. I’m a freelance journalist and the author of a forthcoming book called Obsolete: Power, Profit, and the Race to build Machine Superintelligence. Consider subscribing to stay up to date with my work.
Wow. The Wall Street Journal just reported that, "a consortium of investors led by Elon Musk is offering $97.4 billion to buy the nonprofit that controls OpenAI."
Technically, they can't actually do that, so I'm going to assume that Musk is trying to buy all of the nonprofit's assets, which include governing control over OpenAI's for-profit, as well as all the profits above the company's profit caps.
OpenAI CEO Sam Altman already tweeted, "no thank you but we will buy twitter for $9.74 billion if you want." (Musk, for his part, replied with just the word: "Swindler.")
Even if Altman were willing, it's not clear if this bid could even go through. It can probably best be understood as an attempt to throw a wrench in OpenAI's ongoing plan to restructure fully into a for-profit company. To complete the transition, OpenAI needs to compensate its nonprofit for the fair market value of what it is giving up.
In October, The Information reported that OpenAI was planning to give the nonprofit at least 25 percent of the new company, at the time, worth $37.5 billion. But in late January, the Financial Times reported that the nonprofit might only receive around $30 billion, "but a final price is yet to be determined." That's still a lot of money, but many experts I've spoken with think it drastically undervalues what the nonprofit is giving up.
Musk has sued to block OpenAI's conversion, arguing that he would be irreparably harmed if it went through.
But while Musk's suit seems unlikely to succeed, his latest gambit might significantly drive up the price OpenAI has to pay.
(My guess is that Altman will still ma
Project seeking analysis and developers:
An app for routing recurring meat offset payments to effective animal orgs. I've made a hackpad for it here.
Big questions for debate here:
a) would its absolute effect be positive? b) if not, is building it less bad than the counterfactual of an ineffective animal org doing it?
The EA newsletter goes out to thousands of people. We should add a sentence with a link to the EA newsletter's email or whatnot, inviting subscribers to email the newsletter team if they'd like to advertise a job at their EA organization. It could also work for the EA founders of startups or somesuch. Might be the best way to spread the word about EA jobs since the EA jobs board .impact made.