🏠 OpenAI Opera

The Great Restructuring

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GM! It’s Brett again. If you're thinking about starting a company in 2025, you need to watch this video of Elon.

He makes 2 crucial points: first, starting a company is brutally hard - it's like eating glass and staring into the abyss. Second, your product has to be significantly better than what's out there if you want any shot at success.

Being a founder isn't a side project or just another job - it's a career path that demands everything you've got. But if you're all in, you can get there.


Here's to building something amazing in 2025. Happy New Year!

🏠 AI

The Drama

OpenAI is ditching its weird nonprofit/for-profit hybrid setup. They're converting to a Delaware Public Benefit Corporation - basically the same structure Anthropic and xAI use. The original nonprofit gets shares in the new entity, but loses control.

This move isn't random. OpenAI just raised $6.6B at a $157B valuation, but Reuters reports this funding was contingent on them changing their structure and dropping the profit cap within 2 years

The plan faces strong opposition. Meta has asked California's AG to block the conversion, saying it would have "seismic implications for Silicon Valley." This adds to an existing lawsuit from Elon filed in August, claiming OpenAI abandoned its original mission.

There's internal drama as well. Former employees like Miles Brundage are raising red flags about prioritizing commercial interests over safety.

Here's the thing - this is bigger than just OpenAI's corporate structure. It's showing us how expensive and competitive AI development really is. According to their blog post, they need to "become more than a lab and a startup" to pursue their mission, highlighting how AI development at this scale requires massive capital investment with conventional equity terms.

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Raise: xAI, Elon Musk’s AI company, raised $6B in a Series C funding round to accelerate its AI research and development.

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End of Quarter Checklist:

  1. Investor Update: Email an update to your extended network of investors, including those who haven’t invested yet.

  2. Trim Expenses: Review all expenses, no matter how much runway you have. Cut the unnecessary. Stay lean.

  3. Team Reflection: Discuss with your team on what went well, what didn’t, and what you’re going to do next.

 

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