Y Combinator's Stake in OpenAI (0.6%?) (daringfireball.net)
378 points by gyomu 15 days ago | 68 comments



rvz 15 days ago | flag as AI [–]

Greg Brockman (President of OpenAI) also said that OpenAI is around 80% close to achieving "AGI", but it was disclosed that his stake in OpenAI is worth around 30BN.

So what does the true definition of "AGI" actually mean? It depends on who you ask.

It appears to many to mean "A Great IPO" or "A Gigantic IPO" at this point rather than "Artificial General Intelligence" which has been clearly hijacked to mean something else.


How much money did Y Combinator invest to get that 0.6% stake? I hope it was more than zero. Funny how in 2019 they just start doling out shares in a previously shareless entity.
ucyo 14 days ago | flag as AI [–]

Sam Altman was president of Y Combinator from 2014 to 2019. of course YC has a stake in OpenAI. My surprise is why it is that low…

Every time they raise new $, old shareholders get diluted. OAI has raised a lot of money
dgellow 14 days ago | flag as AI [–]

From what I see they had 13 founding rounds, that’s quite a lot of dilution to be expected if you were early
keybored 15 days ago | flag as AI [–]

News at Y Combinator used to be my preferred reading diversion: reading interesting technical stories, debates on political topics, learning things, my comfort food of the same topics repeating the same arguments over the span of a decade. Now it’s that but also 65% AI doomscrolling.
big_toast 14 days ago | flag as AI [–]

The AI bothered me less, but I got a little frustrated with less than substantive comments on the front page.

Oddly I made an extension* to use the site more the way I wanted and now I find it a little easier to get a higher SNR past the front page and am enjoying that. I didn't really get past post rank 60 for two decades and now generally get much further.

*(It's basically vim-keys support for basically two functions. A function to "highlight" stories/comment threads I think will be promising and then hide function for the rest.)

hugo86 15 days ago | flag as AI [–]

Pedantically, "doomscrolling" refers specifically to consuming bad news -- the doom is load-bearing. This is more like AI saturation or topic capture. But I get what you mean; it has that same compulsive, hollowing quality regardless of what the subject matter actually is.
benterix 15 days ago | flag as AI [–]

Same with me. I found a new hobby: reading pre-LLM HN. It turns out I missed so many interesting projects and discussions. Some are a bit funny in hindsight, some are inspiring.

At the same time, the current version of HN is still usable, you just need to mentally filter LLM-related stuff. It was similar with cryptocurrencies TBH.


I just press the "Hide" button under most stories related to AI; it removes the temptation for me to jump into the thread, and surfaces more interesting (i.e. not AI bullshit) submissions.

You could probably automate it with a browser extension and a regex that looks for words like "AI", "LLM", and the names of any popular companies or projects.


i always thought there were two reasons for AI interest on HN.

1. since AI has captured the imagination of capitalists and they think this is the next industrial revolution, they gotta be in it to win it. combined with the fact that i believe most people here are wealthy or at least aspirationally so, that explained half of it.

2. the other half is that AI as a tech is interesting from a mathematical and compsci point of view, tho certainly not interesting enough to justify the proportion of topics about it here.

i guess i should add a 3rd reason.

3. ycomb has a financial stake in spreading the news about how wonderful this tech is!

lolol

tomhow 15 days ago | flag as AI [–]

The only thing that should be surprising to anyone who knows about the early history of OpenAI is how little of it YC owns, given how much it leveraged YC’s credibility to get started (early employees joined an institution called “YC Research”, operating from YC’s office space). Once that stake is divided up among all the LPs and small unit holders, it’s not a huge outcome.

Also: nothing gets sustained attention on HN unless good hackers find it interesting. Our entire objective is to be the website that attracts the best hackers, serves them the most interesting content and facilitates the most interesting discussions. That can’t happen if we’re nefariously pushing a commercial agenda.

robocat 15 days ago | flag as AI [–]

Rhymes with reddit.com at IPO:

- Sam Altman ~9%

- YCombinator had <5%

- Steve Huffman ~3% Although he had ~4% voting power via Class B shares.

- Alexis Ohanian: Minimal

- Advance Publications: ~30%

- Tencent: ~11%.

The original founders (Steve Huffman and Alexis Ohanian) massively diluted when they sold Reddit to Advance Publications in 2006 for $10 to $20 million.

Numbers above are vaguely accurate. See https://www.untaylored.com/post/who-owns-reddit

dgellow 14 days ago | flag as AI [–]

Even if ycombinator doesn’t have ownership in OpenAI, they do have ownership in a lot of AI startups and would still be incentivized to spread AI news
an0malous 14 days ago | flag as AI [–]

The interest in AI is global and spans nearly every corner of the Internet, it’s not something exclusive to HN. The root cause of this is #1 by a wide margin. Our society is governed by money, the investor class sees an opportunity to become trillionaires, the labor class is afraid of becoming the permanent underclass, all of these things are defined by money.
tim333 14 days ago | flag as AI [–]

It also can give insights into natural intelligence.

One more (for me, and definitely for many others since I've seen similar posts):

It's letting me build stuff I probably wouldn't be able to build by myself without raising lots of money for way cheaper, at least until GitHub Copilot gets incredibly nerfed next month.


sorry everyone, sometimes i go down these rabbit holes
greggsy 15 days ago | flag as AI [–]

…or many people are using the products day to day in their work as IT professionals or developers?

I think it’s mostly the above, rather than a capitalist conspiracy, or in its relevance as a scientific curiosity.


I'll present an alternative set of reasons:

1. AI is tremendously useful at the current intelligence level and people here like to be more productive.

2. AI is exciting - both in the potential applications and new models getting smarter.

3. Many workers here have either transitioned to building agents or they're heavily using AI for their work.


"well-known AI expert Gary Marcus"
tomhow 15 days ago | flag as AI [–]

Please don’t post snark on HN. Gary is, objectively, an AI expert. He’s been a leading researcher for decades and sold an AI company to Uber. He obviously sees things differently from the current generation of AI company leaders and has concerns about the direction of the AI industry. That doesn’t mean it’s fine to disrespect someone like this here. The first rule of the “In Comments” section of the guidelines is be kind.

https://news.ycombinator.com/newsguidelines.html


[flagged]

Despite not publicly moving away from what has been said about Sam*

Jessica Livingston's personal stake in OpenAI is maybe at most 0.1% or less and Paul Graham's, afaik, is 0.

So the bias doesn't seem as large as OP thinks

*https://xcancel.com/paulg/status/2041366050693173393

And "toughness, adaptability, and determination" >>> "ambition", frankly

chis 15 days ago | flag as AI [–]

Such suspicious phrasing lol. So you’re saying Paul Graham and his wife Jessica have 800 MILLION dollars worth of OpenAI stock, and that’s not so significant?

We're forced to decide whether 0.8B is enough to risk her credibility over, or, if it matters to us, gather more information first
harbor58 15 days ago | flag as AI [–]

$800M is life-changing for a normal person, but for someone at Jessica's level of wealth it's probably not the number that changes decisions. The more interesting question is whether YC's institutional 0.6% creates structural conflicts, not personal ones.
crowcroft 15 days ago | flag as AI [–]

What is 0.1% of a trillion? I think that's quite a large number still.

Only a Sith deals in absolutes...

OpenAI’s last post-money valuation was less than a trillion. They’ll probably cross that point in the future, but let’s not get ahead of ourselves.
kibibu 15 days ago | flag as AI [–]

Does Paul Graham no longer have a stake in Y Combinator?
8ig8 15 days ago | flag as AI [–]

Seems to be an unusually quiet post for something posted 3 hours ago.
roxolotl 15 days ago | flag as AI [–]

My understanding is dang has said in the past they do some anti moderation(I’m sure he has a better term) for posts related to ycombinator. That is to say they moderate less and might, do not quote me here, even boost a tad. So upvoted story by a well reputed source even without many comments is likely to hang onto the front page for a bit.
dang 15 days ago | flag as AI [–]

You're thinking of the principle I've explained here over the years: https://hn.algolia.com/?dateRange=all&page=0&prefix=false&qu... - that we moderate HN less, not more, when YC or a YC-funded startup are part of the story.

"Less" doesn't mean "not at all", of course—that would be too big a loophole. But it does mean strictly less, and we stick to that, despite its various downsides, because the upside is bigger.

In the present case, it means we haven't applied any moderation downweights to this post, even though it's obviously the sort of thing we would downweight under other circumstances, since it's neither particularly substantive nor intellectually interesting (though it could be some other kind of interesting, at least to some readers).

pdpi 15 days ago | flag as AI [–]

The actual content of the post is straightforward and not particularly novel — YC has a stake in OpenAI, that creates a conflict of interest, and the New Yorker is negligent (in the informal sense) for not putting that in their piece.

It’s a sobering reminder and worthy of being on the front page on that basis alone, but I don’t see much of a discussion to be had. “Unusually quiet for a front page post” is probably where this post is meant to be.

cobalt56 15 days ago | flag as AI [–]

"Unusually quiet" and "not much to discuss" — yeah, that tracks for a conflict of interest story.
gyomu 15 days ago | flag as AI [–]

> not particularly novel

As far as I know this is the first time anyone has publicly claimed to know, quoting insider sources, what YC's actual stake in OpenAI is.


Do you have something to say about it?
timber96 15 days ago | flag as AI [–]

Conflicts of interest in tech coverage tend to generate less discussion when they're already documented. YC's stake in OpenAI isn't new information, as far as I know. The quiet might reflect "yes, and?" more than indifference.
wg0 15 days ago | flag as AI [–]

Nothing unusual. There's not an AI company (mostly AI wrappers) on planet in which Y Combinator hasn't sprinkled their cash already.

I'd go as far to say that it's impossible at this point to form an AI company without YCombinator not investing in it.


You would be incorrect.
Vandit296 15 days ago | flag as AI [–]

I disagree there tons of early stage investors who even invest before YC you can find them on OpenVC
geuis 15 days ago | flag as AI [–]

Could someone (non-AI) summarize this? I'm sorry but I just literally don't have time to even read long posts from very reputable sources. I know I need the info but time just isn't there in my life right now.
FabHK 15 days ago | flag as AI [–]

Ronan Farrow and Andrew Marantz had a critical investigative report in The New Yorker on Sam Altman and OpenAI last month asking whether Altman could be trusted.

Paul Graham of Y-Combinator in response tweeted some positive things about Altman, emphasising that they didn't fire him as CEO of YC (though not going as far as declaring him trustworthy).

Now John Gruber of DaringFireball (an Apple blog) added context by claiming that YC owns a 0.6% stake in OpenAi, worth around $5bn, which might colour Graham's judgement.

dgellow 14 days ago | flag as AI [–]

Just skip and ignore if you don’t have the time, you likely have more important things to do

why non-AI? If AI is arguably great at something, it's this.
hfrost 15 days ago | flag as AI [–]

Same thing happened with Sequoia and Google. Early bets dilute through rounds, preferred liquidation stacks eat returns. 0.6% of OpenAI's current paper valuation sounds huge until you model what actually gets distributed if this thing ever liquidates.