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https://freedium.cfd/https://medium.com/predict/is-openai-a-ponzi-scheme-2cc7dad8d02e>
'It's fair to say that I am sceptical of the AI revolution and its spearhead,
OpenAI. The entire movement stinks of all hype and no trousers. But I never
thought I would have to pose the "Is it a Ponzi scheme?" question. You see,
OpenAI is going ahead with its transition to a for-profit structure. Not only
does this make no sense, as, what profit? OpenAI is still and will almost
certainly continue to operate at a massive loss. But OpenAI's questionable CEO,
Sam Altman, is set to gain a massive 7% stake in OpenAI during this switch,
equivalent to a $10 billion payday. I tried unpicking the convoluted logic
behind this switch and the subsequent enrichment of Mr. Altman but discovered
something completely unexpected.
First of all, let's define what a Ponzi scheme is. Google defines it as a form
of fraud in which belief in the success of a non-existent enterprise is
fostered by the payment of quick returns to the first investors from money
invested by later investors.
Straight away, there is a phrase in there that ensures OpenAI can't be a Ponzi
scheme. After all, OpenAI is a fully operational enterprise with functional
products that millions of people use, and as such, it doesn't meet Google's
definition of a Ponzi scheme. However, Google's definition is based on public
perception, not a legal definition. Instead, legal definitions describe a Ponzi
scheme as an investment fraud that pays existing investors with funds collected
from new investors. It doesn't matter if this involves a legitimate business or
not.
With this in mind, there are four issues, which, when viewed together with the
context of this for-profit shift and equity gift to Altman, at the very least
make OpenAI look suspiciously similar to a Ponzi scheme.'
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
