OpenAI, the company behind ChatGPT, has been making headlines with its rapid growth and huge investments, but not everyone is thrilled with its evolution. On the recent All-In Podcast, David Sacks called out the company for its shift from a nonprofit to a major profit-making machine, saying, “They’ve gone from nonprofit philanthropy to piranha for-profit company.”
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With his negative sentiment toward the prolific AI company, Sacks has joined the ranks of billionaires like Elon Musk, who are relentless in criticizing its CEO Sam Altman and the way he’s been leading the company.
Sacks’ remarks touch on the reality that OpenAI, which began as a nonprofit corporation dedicated to doing good, is currently actively locking down investments and raising billions of dollars. The tech community is grappling with this development, particularly its demand for exclusive funding partnerships.
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“They originally started that Enterprise with 50 million or so from Elon. It was a nonprofit. Then, they became a for-profit. Now, a report says they’re telling investors in this round that they can’t invest in any other AI companies. They’ve gone from nonprofit philanthropy to piranha for-profit company,” said Sacks.
He's referring to the Financial Times report that came out last week and suggested that OpenAI has been telling investors not to back competitors like Anthropic or xAI, which Elon Musk founded.
Mark Cuban, the guest on the podcast, shared his thoughts on the situation, saying, “It’s their company. They get to do what they want, period." When Sacks said, “But not under false pretenses," Cuban simply answered, “Don’t invest.”
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To him, companies like OpenAI should be open and honest with investors. He didn't agree with OpenAI’s move to push for exclusive funding deals, saying, “I wouldn't do business with people like that. I certainly could have given him money. Didn’t give him money. To me, that’s just wrong.”
Cuban has also been clear that OpenAI's success doesn't guarantee they'll remain on top. He's skeptical about the company’s long-term prospects, saying, “There’s nothing that says that OpenAI is going to win.” His advice is simple: be careful when betting on companies that seem to be playing games with their investors. “When people f*** over investors, it always comes back. Karma’s a b**** in business, too.”
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