Founders, Two Audiences: Peer candor vs the public line

Public RegisterDecember 11, 2015

OpenAI Founding Press Release

founding announcement · OpenAI Announcement Post

“OpenAI is a non-profit artificial intelligence research company. Our goal is to advance digital intelligence in the way that is most likely to benefit humanity as a whole, unconstrained by a need to generate financial return.”

Private ArtifactJune 2015

Sam Altman to Elon Musk

private email exchange · Founding correspondence released in Musk v. Altman

“We need to structure a startup-like equity compensation plan or researchers will simply take the $2M offers at DeepMind. The non-profit structure is great for optics and mission, but we need equity upside to retain talent.”

The Split:The founding charter promised a pure non-profit unconstrained by financial return. In founding emails, Altman was already planning startup equity upside to compete with Google, describing the non-profit model as great for 'optics'.

The Tell:When an ambitious tech venture announces a non-profit structure 'for humanity', check whether the term sheet contains convertible equity promises.

Pipe: courtUnsealed in Elon Musk v. Sam Altman (San Francisco Superior Court).

Step 2 of 5testimony-gap

When Musk departed, PR cited avoiding self-driving conflicts of interest. The unsealed emails revealed a raw battle over who would hold absolute control and ownership.

testimony-gapai·2018

Musk and Altman struggle over the steering wheel

Public RegisterFebruary 2018

OpenAI & Elon Musk

joint press announcement · OpenAI Blog: 'Elon Musk departs OpenAI Board'

“Elon Musk will depart the board as OpenAI enters an advanced phase. This will eliminate a potential future conflict of interest with Tesla's self-driving AI work.”

Private ArtifactFebruary 2018

Elon Musk to Sam Altman and Greg Brockman

private email negotiation · Internal email correspondence

“Musk: 'OpenAI has zero chance of beating Google DeepMind without massive capital. My assessment is that OpenAI should be attached to Tesla as its cash cow.' Altman & Brockman: 'We cannot agree to Elon having full control and majority ownership.'”

The Split:The departure was publicly framed as an amicable separation to avoid conflicts of interest. The unsealed emails revealed a ferocious clash for ultimate ownership and control, with Musk demanding Tesla absorb OpenAI.

The Tell:'Departing to avoid potential conflicts of interest' usually means one faction tried to seize majority control and was repelled.

Pipe: courtMusk v. Altman lawsuit unsealed filings.

Step 3 of 5paper-trail

Steve Jobs and Eric Schmidt praised Silicon Valley as an open meritocracy for talent while secretly executing illegal no-poach pacts sealed with smiley faces.

paper-trailtech-labor·2007 / unsealed 2014

Steve Jobs and Eric Schmidt's handshake deal

Public Register2007

Steve Jobs & Eric Schmidt

CEOs of Apple and Google · Joint public appearances and industry panels

“Silicon Valley is an open, merit-based ecosystem where engineers and designers are fiercely competed for based on world-class innovation and talent.”

Private ArtifactMarch 7, 2007

Steve Jobs to Eric Schmidt

private email exchange · Direct email from Jobs to Schmidt

“Jobs: 'I am told that your recruiter is aggressively trying to recruit an Apple engineer. I would be very pleased if we could stop this.' Schmidt to HR: 'Please get this recruiter fired within the hour.' Schmidt to Jobs: 'Recruiter terminated.' Jobs to Schmidt: ':)'”

The Split:While celebrating fierce competition for talent, Jobs demanded the firing of an ordinary recruiter who contacted an Apple engineer. Schmidt complied within an hour, and Jobs replied with a smiley face.

The Tell:An anti-poaching pact is evidenced not by a grand conspiracy contract, but by a 2-character smiley face closing an executive backchannel.

Pipe: courtUnsealed in High-Tech Employee Antitrust Litigation (N.D. Cal.).

Step 4 of 5euphemism

When Palm's CEO pointed out that non-compete cartels were illegal, Jobs dropped all pretenses of visionary ethics and threatened patent retaliation.

euphemismtech-labor·2007 / unsealed 2014

Jobs threatening Palm with patent warfare

Public Register2007

Steve Jobs

CEO, Apple · All Things Digital (D5 Conference)

“We don't worry about competitors copying our products or hiring our people. We just focus on making the best products in the world and letting customers decide.”

Private ArtifactAugust 2007

Steve Jobs to Edward Colligan

email correspondence · Direct email from Jobs to Palm CEO

“Colligan: 'Your proposal that we agree not to hire each other's employees is not only wrong, it is likely illegal.' Jobs: 'I'm sure you realize the asymmetry in the financial resources of our respective companies... We have substantial patents. Think about the consequences.'”

The Split:Jobs told journalists he didn't worry about competitors hiring staff. When Palm CEO Ed Colligan told him a no-hire pact was illegal, Jobs threatened to crush Palm financially with patent litigation.

The Tell:The phrase 'focus on making great products' in public frequently masks predatory legal bullying behind the curtain.

Pipe: courtDOJ Antitrust unsealed exhibits.

Step 5 of 5safety-theater

Elizabeth Holmes captivated the world with her TED talk on touchless diagnostics from a drop of blood, while texting Sunny Balwani about manual dilutions on Siemens machines. Peer-to-peer speech is often the honest register; employee, press, and congressional speech is the affordable one.

safety-theaterbiotech·2014

The drop of blood fiction

Public RegisterSeptember 2014

Elizabeth Holmes

CEO, Theranos · TEDMED Keynote / The New Yorker Profile

“A chemistry is performed so that a chemical reaction occurs and generates a signal from the chemical sample with the lab personnel doing no hands-on work with the sample. One tiny drop of blood changes everything.”

Private ArtifactNovember 2014

Elizabeth Holmes & Sunny Balwani

private text messages · Encrypted text messages entered into federal trial evidence

“Holmes: 'Our machines are failing QC every morning.' Balwani: 'We are running all tests on Siemens machines with manual dilutions. We are praying for a miracle because this analyzer simply does not work.' Holmes: 'I know. Praying to the universe.'”