“Previously, investors in OpenAI’s commercial entity were capped at making 100 times their money before the rest of its profits flowed back to the nonprofit.
With the new PBC subsidiary, OpenAI spokesperson Steve Sharpe tells me that investors and employees will own regular stock with no cap on how much it can appreciate. “
They got exactly what they want anyway. This is no victory.
This doesn’t make sense to me. The ultimate value of shares is in the dividends they represent, no? If there are no dividends ever, what are they sharing in? Is it just a postponement until future dividends? A share in control of activities?
I get that there’ll be speculation that will keep values increasing, and selling can net a profit, but what does the last share-holder get?
The ultimate value of shares is in the dividends they represent, no?
No. The actual (and only) value of shares is investors’ expectation of the value of future appreciation in share value and of dividends. And there is not a constant relationship between share values and dividends: the price-to-earnings (P/E) ratio can vary hugely depending on the nature of the business and on investor sentiment-- for example, P/E can be massive during a speculative frenzy, with no underlying reason besides wishful thinking.
Once the bubble pops they’ll rugpull the same way they do crypto. Either that or it will grow so large that they convince someone to aquire them wholesale
“Previously, investors in OpenAI’s commercial entity were capped at making 100 times their money before the rest of its profits flowed back to the nonprofit.
With the new PBC subsidiary, OpenAI spokesperson Steve Sharpe tells me that investors and employees will own regular stock with no cap on how much it can appreciate. “
They got exactly what they want anyway. This is no victory.
This doesn’t sound like a nonprofit.
This doesn’t make sense to me. The ultimate value of shares is in the dividends they represent, no? If there are no dividends ever, what are they sharing in? Is it just a postponement until future dividends? A share in control of activities?
I get that there’ll be speculation that will keep values increasing, and selling can net a profit, but what does the last share-holder get?
No. The actual (and only) value of shares is investors’ expectation of the value of future appreciation in share value and of dividends. And there is not a constant relationship between share values and dividends: the price-to-earnings (P/E) ratio can vary hugely depending on the nature of the business and on investor sentiment-- for example, P/E can be massive during a speculative frenzy, with no underlying reason besides wishful thinking.
https://en.wikipedia.org/wiki/Greater_fool_theory
Once the bubble pops they’ll rugpull the same way they do crypto. Either that or it will grow so large that they convince someone to aquire them wholesale
This is just every economic endeavour in existence nowadays, the issue with cryptocurrency is that it contains no guard rails (+ environmental issues)
Unless you work for a corporation, ask your employer what their exit strategy is.
Technology and intellectual property, including patents. These are only put up for sale if the company is liquidated or declared bankrupt.