The OpenAI Corporate Structure

Here is an updated organizational chart for OpenAI. I created it from the allegations in the latest of several copyright infringement suits against OpenAI. I sure would love to know what the folks at Treasury and TE/GE say about all this around the water cooler. And I still think Larry Summers is a recently appointed OpenAI trustee more for his Treasury Department experience and connections than for anything else in his remarkable background.  

The research and development nonprofit/for profit joint venture formerly known as OpenAI LP is now referred to as OpenAI OpCo LLC.  Recall that Microsoft, which reportedly owns 49% in two joint ventures, OpenAI OpCo and OpenAI Global LLC, is entitled to a profit share “capped” at 100 times its investment.  The two bottom entities appear to be the marketing arms responsible for “monetizing” the technology produced by OpCo. In the world of tax exempt scientific research, those companies would be more appropriately referred to as the technology transfer entities.  One for global operations and one for domestic apparently.  Note that OpenAI Inc.’s wholly owned management company controls technology transfer via OpenAI Global.  One might think the same management company effectuates OpenAI’s control over OpCo too, but  the complaint is silent in that regard.  Another fact of very high significance, one not shown in the org chart, is that OpenAI Inc insiders comprise the majority of the joint ventures’ governing bodies as required by Rev. Ru;/ 98-15.  But they are also employees of the OpCo compensated via stock shares the value of which is contingent on OpCo’s market performance. Currently, OpenAI OpCo’s value is nearly $2 billion. Its fair to ask whether insider’s potential to reap astronomical profit makes whatever charitable control they represent over the joint venture illusory.      

darryll k. jones