🤖 OpenAI’s Company Structure Explained

Subscribe | Contact | Meet The Team

Welcome back AI enthusiasts!

In today’s AI Report:

• 👷OpenAI’s Company Structure Explained

• 📊AWS Announces New AI Chip

• 🛠5 Trending Tools

• 💰Venture Capital Updates

• 💼Who’s Hiring?

Read Time: 3 minutes

🗞RECENT NEWS

OPENAI

👷OpenAI’s Company Structure Explained

OpenAI was initially launched as a nonprofit in 2015 to develop Artificial General Intelligence (AGI) that benefits humanity. So, how does the company’s equity compensation work? Is OpenAI profitable?

Key Details:

Company Structure:

• In 2019, OpenAI shifted from a nonprofit model to a “capped profit” framework called OpenAI LP to raise capital in pursuit of its mission. This framework provides investors and employees a capped return if the company succeeds, allowing OpenAI “to raise investment capital and attract employees with startup-like equity.” However, any returns beyond what OpenAI owes investors of OpenAI LP are funneled into the original OpenAI nonprofit entity.

Employee Compensation:

• OpenAI’s compensation plan includes two factors:

  1. Base Salary: a fixed amount of income earned every few weeks.

  2. Profit Participation Units (PPUs): a type of equity compensation entitled to a percentage of the profits. For example, if you own 1 PPU and 100 PPUs exist, you’re entitled to 1% of the company’s profits.

• When candidates are given an offer from OpenAI, they don’t know how many PPUs they’ll receive or how many exist. So, candidates can’t determine if they’re earning 1% or 0.001% of profits.

• PPUs contain a 2-year lock, meaning a new hire can’t sell their units within the first 2 years.

Recent OpenAI Offer:

• The candidate earns a yearly base salary of $300K with a $2M PPU grant vesting evenly over 4 years, bringing total annual compensation to $800K. Examine the offer’s breakdown here.

Why It’s Important:

• Profit interests, like PPUs, are assigned a “liquidation threshold” equal to the company’s equity value. So, OpenAI must hit profits for employees to redeem any value from their PPUs.

• OpenAI recruiters expect to turn a profit once they achieve Artificial General Intelligence (AGI).

AMAZON

📊AWS Announces New AI Chip

During Tuesday’s Reinvent conference in Las Vegas, Amazon Web Services (AWS) announced Trainium2, a chip designed to build AI models.

Key Details:

• Amazon’s Trainium2 chips are built for deploying AI applications, including open-source conversational chatbots like OpenAI’s ChatGPT or Anthropic’s Claude 2.

• Trainium2 handles neural networks with trillions of parameters, or neural weights, providing scale and power for users to train a 300-billion-parameter Large Language Model (LLM) in weeks versus months.

• The chip can deliver 4X faster training performance with 3X more memory capacity than its predecessor while improving energy efficiency (i.e., performance per watt) up to 2X.

Why It’s Important:

• The trillion-parameter count is an industry obsession because the human brain is believed to contain 100 trillion neuronal connections.

• A computer’s ability to interpret, manipulate, and comprehend human language can scale to exceed human performance by constructing a trillion-parameter neural network program.

🛠TRENDING TOOLS

🧮Julius is a data analyst who solves math problems and creates visualizations.

📱MAGE generates full-stack web apps in Wasp, React, Node.js, and Prisma.

👩‍⚕️LiarLiar detects fluctuating heart rates and shifting facial expressions during video calls.

⛲️Flowpoint optimizes conversations, prioritizes impactful solutions, and provides actionable data-driven decisions.

💻Manot is an insight management platform that detects blindspots in your computer vision model.

💰VENTURE CAPITAL UPDATES

• On ChatGPT’s first anniversary, its mobile app topped 110 million installs and nearly $30M in revenue.

• Kognitos raises $20M to help businesses automate back-office processes.

• SeeChange Technologies secures $10M for AI-driven retail solutions.

💼WHO’S HIRING?

• Cohere (Remote): Finance and Accounting Co-op Intern, Winter 2024

• Shield AI (San Diego, CA): Planning and Controls Engineering Intern, Summer 2024

• Hugging Face (Remote): Founding Decentralized ML Research Engineer

🤖PROMPT OF THE DAY

CUSTOMER LOYALTY

🎉After-Sales Support

Analyze [Product/Service] and recommend ways to improve after-sales service and streamline customer support. Currently, our company offers support through [Current Channels]. What initial improvements can our company make to better assist customers who purchase [Product Category]?

Product/Service = [Insert Here]

Current Channels = [Insert Here]

Product Category = [Insert Here]

📒FINAL NOTE

If you found this useful, follow us on Twitter or provide honest feedback below. It helps us improve our content.

How was today’s newsletter?

• ⭐️⭐️⭐️⭐️⭐️Nailed it!

• ⭐️⭐️⭐️Average

• ⭐️Epic fail.

❤️AI Pulse Review of The Day

🎁NOTION TEMPLATES

🚨Subscribe to our newsletter for free and receive these powerful Notion templates:

• ⚙️150 ChatGPT prompts for Copywriting

• ⚙️325 ChatGPT prompts for Email Marketing

• 📆Simple Project Management Board

• ⏱Time Tracker