Matt Levine, Columnist

OpenAI Isn’t Open Enough for Elon

Also a Harvard Business School alumni Ponzi scheme.

March 1, 2024 at 12:51 PM EST

Matt Levine is a Bloomberg Opinion columnist. A former investment banker at Goldman Sachs, he was a mergers and acquisitions lawyer at Wachtell, Lipton, Rosen & Katz; a clerk for the U.S. Court of Appeals for the 3rd Circuit; and an editor of Dealbreaker.

Before it’s here, it’s on the Bloomberg Terminal

LEARN MORE

I wrote yesterday about reports that the US Securities and Exchange Commission might be looking into whether OpenAI or its founder and chief executive officer, Sam Altman, might have misled its investors. Late last year, OpenAI’s board briefly fired Altman for not being “consistently candid,” and then reversed course and fired itself instead. So there is some reason to believe that somebody wasn’t candid about something.

I had my doubts that it would rise to the level of securities fraud, though. For one thing, OpenAI is a nonprofit organization, and even its for-profit subsidiary, OpenAI Global LLC, which has raised money from investors, isn’t all that for-profit. I wrote:

Before it’s here, it’s on the Bloomberg Terminal

LEARN MORE