Complex Systems with Patrick McKenzie (patio11) Reporting on tech with Kelsey Piper
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Jul 25, 2024 
Kelsey Piper, a journalist for Vox’s Future Perfect, talks with Patrick McKenzie about equity irregularities at OpenAI and the social function of equity in tech. They discuss the frosty relationship between tech and media, editorial policies, media relations, and historical media practices in the modern tech industry.
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OpenAI's Restrictive Equity Policy
- Kelsey Piper uncovered that OpenAI forced exiting employees to sign restrictive non-disparagement agreements to keep vested equity.
- This policy pressured ex-employees to stay silent forever or lose millions in equity they considered theirs.
Vested Equity’s Social Function
- Vested equity in tech is like salary delivered over time, seen as owned by employees after vesting.
- Losing vested equity is considered a moral failure and must be fixed by tech companies.
Tender Offers Provide Liquidity
- Tender offers let employees cash out private company equity earlier, essential as IPOs get delayed.
- OpenAI uses tender offers since its IPO is unlikely, making them critical for employee liquidity.