- in 2025, OpenAI’s for-profit entity recapitalized from a capped-profit entity with residuals flowing to the nonprofit to a traditional public benefit corporation with traditional equity

This is the egregious part. Before full for profit conversion it was worth $300B. Then after $850B.

A true fiduciary would set an auction and that would set the price for for profit valuation. And then all existing investors would keep the value of their positions, but would be diluted because capped profit is worth much less than unlimited profit and residuals.

But, they sold it to themselves for a bargain basement price. The nonprofit lost out on $300B or so. Maybe more.

It was not an arm’s length transaction. It was self-dealing.