ChatGPT and Charity: Can OpenAI Employees Afford to Be Generous?

From Non Profit Dreams to For Profit Schemes

Darling in the world of AI startups where valuations soar higher than my Manolos after a sale at Bergdorf's there's a new dilemma brewing and it's not about finding the perfect brunch spot. It seems OpenAI the company behind ChatGPT has a slight… issue. While employees are swimming in theoretical riches thanks to the company's skyrocketing valuation they can't actually donate their equity to charity. It's like having a closet full of couture but being told you can only admire it not wear it. As I've always said 'Maybe our girlfriends are our soulmates.' But maybe just maybe a charitable deduction is a girl's best friend too?

Profit Participation Units: The New Birkin Bag?

Instead of regular equity these OpenAI staffers get what they call 'profit participation units' (PPUs). Sounds fancy right? Like some exclusive membership to a club where the only rule is you can't transfer your membership without permission. It’s like trying to score a Birkin – desirable elusive and subject to the whims of those in power. And while the company claims it’s all about 'good governance,' I can't help but wonder if there's more to the story. As I once pondered over cosmos with the girls is it better to have loved and lost or never to have owned equity you can't donate? A truly modern conundrum.

Tender Offers and Untender Promises

Last year there was talk! Whispers in the hallowed halls of OpenAI about an opportunity to donate equity after a tender offer. Promises were made timelines were set and then… poof! The timeline vanished into thin air much like my patience when faced with a delayed brunch order. Now insiders are saying OpenAI is 'at least a year late' in offering this opportunity. Meanwhile the value of their holdings is climbing faster than Samantha trying to snag a younger man at a Hamptons party. Isn’t that just like life? Teasing you with potential then snatching it away at the last minute.

Mystified and Magnanimous: The Millionaire's Dilemma

As Christina Kramlich a wealth management guru put it she's 'mystified' why a startup would block employees from contributing. Because darling donating isn't just about being nice; it's a savvy tax move! Donor advised funds (DAFs) allow employees to receive a tax deduction and avoid capital gains meaning more money for the charity. Everyone wins! Unless of course you're OpenAI and you're too busy managing your cap table to care about charitable impulses. I find myself pondering in a world obsessed with giving back is OpenAI playing checkers while everyone else is playing chess?

The Cap Table Conspiracy: Who Gets to Play?

Apparently OpenAI has a vested interest in keeping certain charities off its cap table. Some suggest it's because employees are passionate about different competing facets of AI safety and the company wants to maintain control. It's like deciding who gets a seat at the cool kids' table in high school only instead of deciding on who can talk about current events and AI it is all about money and stock options. Is it just me or is corporate life starting to sound like a bad episode of 'Gossip Girl?'

IPO Dreams and Stock Option Nightmares

With no IPO on the horizon and OpenAI too pricey to acquire employees are stuck in a stock option purgatory. Sure they can sell a portion of their shares annually but the donation issue remains a concern. And now with a restructuring into a public benefit corporation things are getting even more complicated. As Bret Taylor OpenAI's board chairman said the move will alter the equity structure so everyone can 'own equity in that PBC.' Oh darling it's enough to make you want to trade in your stilettos for a sensible pair of flats and move to the suburbs. Almost.