Unhinged
On Twitter's sale price, regulated utilities, and the problem of public interest
Like people, companies sometimes have suitors. And sometimes those suitors get rejected, just as OpenAI (makers of ChatGPT) have spurned a takeover offer from X (formerly known as Twitter).
â– The offering price tells us one thing: At least two parties think the company is worth more than $97.4 billion -- the offeror and the offeree. It would be irrational to offer a price higher than the perceived value of the firm, and it would likewise be crazy to reject an offer for much more than intrinsic value.
â– But the whole story tells us something else. We are not well-equipped to handle large institutions run by any rules other than large, for-profit shareholding. OpenAI has an unusual structure that tries to blend a non-profit mission with a semi-profit business. The origins of the structure come from the perception that artificial intelligence is a special kind of public good, and that it requires a special kind of managerial orientation.
â– Within a capitalist or market-driven economy, the for-profit model will always predominate. The profit motive is almost undefeated when it comes to encouraging innovation, progress, and efficiency. But that's not always what's optimal for society.
â– Especially where there are distinct matters of public interest involved, we need to be experienced and familiar with a toolkit that doesn't just include C-corporations, but also regulated utilities, mutual associations, co-ops, and the like. And then we need to be sure those other structures attract people just as skilled, thoughtful, and forward-thinking as any conventional for-profit.
