Innovate on Product, Not Structure

The majority of the IP at open AI was generated after the for-profit was established, raising questions about the fairness of the initial transfer of value to the for-profit entity. The compensation earned by individuals through the for-profit entity should be proportional to their contributions at the setup stage. The crucial inquiry lies in the actual charitable work conducted by open AI as a nonprofit entity. If the nonprofit solely exists as a shell with an interest in the for-profit entity, it raises concerns about its activities. The speaker highlights the risks of innovating on legal structures, suggesting that sticking to traditional startup structures like a c-corp is more reliable. They also suggest that open AI is facing challenges regardless of their decisions.