Nonprofit Donation Loophole, NYPD 'Kettling' and Anti-DEI Map (news)

The episode covers the Open AI lawsuit filed by Elon Musk, the NYPD mandated to change protest response tactics, the rise of anti-DEI bills in several states, the history of Women's History Month, and ends with a lighthearted dad joke. The hosts also discuss the behind-the-scenes tactics of editing and adapting content for YouTube and share their thoughts and insights on various nonprofit-related topics.

The Clash Over Nonprofit Promises and Silicon Valley Profits (Musk vs. OpenAI)

 

Elon Musk is suing OpenAI, alleging it has strayed from its nonprofit roots to chase profits, according to reporting from Axios and others. The heart of the dispute lies in Musk's claim that OpenAI, which he helped found, reneged on a commitment to operate as an open-source entity under its original 501(c)3 nonprofit status.

 

The lawsuit accuses OpenAI of becoming a secretive, profit-driven organization under Microsoft's influence (with the initial ability to leverage tax-deductible donations). The lawsuit alleges this is an egregious shift from OpenAI’s original mission, and highlights how the 501(c)3 could serve as a vehicle to abuse by commercial businesses. (See also how IKEA is owned by a nonprofit!)

 

"If this business model were valid, it would radically redefine how venture capitalism is practiced in California and beyond,” says Musk. He adds that “competing against an entity employing the new OpenAI business model would be like playing a game of basketball where the other team's baskets are worth twice as many points,” in reference to the pre-tax benefits of OpenAI’s initial funding model.

 

Though, it is worth noting is that Musk might also be interested in slowing down OpenAI so his Grok competitor can catch up…