When nonprofit hospitals get purchased by a for-profit hospital, one of the government rules states that the for-profit must establish a grantmaking or research foundation that ensures all the "charitable" monies that had been a part of the nonprofit continues to exist in the community. I know, this is Mike's interpretation but the simple fact is that the law says a for-profit can't simply profit from the works of a nonprofit (although that's obviously not the case in daily practice).
OpenAI, the notorious nonprofit focused on the future of Artificial Intelligence has just succeeded in raising $6.6 Billion (yes, billion) in venture capitol. Thrive Capital led the round with $1B, alongside Microsoft, Nvidia, SoftBank, and more. The funds are contingent upon the company's transition from a nonprofit to a for-profit entity within two years. Investors were also asked to avoid funding major rivals in the industry. Here's a video to describe AI and what is all the focus on OpenAI.
Why aren't we outraged about his transaction - a research "lab" being turned-into a for-profit with billions of dollars floating around? Is the taxpayer not being screwed royally with OpenAI having gotten to this place under the guise of a nonprofit? Does one really believe the board (that includes some of the very investors mentioned above) didn't connive this move from the beginning? What makes OpenAI any different than a pharmaceutical company EXCEPT that it is currently tax exempt. IRS, where are you?