Another key difference is that the growth is currently capped at 10x. Similar to their overall company structure, the PPUs are capped at a growth of 10 times the original value.
As the company was doing well recently, with ongoing talks about a investment imply a market cap of $90B, this would mean many employees might have hit their 10x already. The highest payout they would ever get. So all incentive to cash out now (or as soon as the 2-year lock will allow), 0 financial incentive to care about long term value.
This seems worse in aligning employee interest with the long term interest of the company even compare to regular (unlimited allowed growth) equity, where each employee might hope that the valuation could get even higher.
Also:
It’s important to reiterate that the PPUs inherently are not redeemable for value if OpenAI does not turn a profit
So it seems the growth cap actually encourages short term thinking, which seems against their long term mission.
From your last link:
As the company was doing well recently, with ongoing talks about a investment imply a market cap of $90B, this would mean many employees might have hit their 10x already. The highest payout they would ever get. So all incentive to cash out now (or as soon as the 2-year lock will allow), 0 financial incentive to care about long term value.
This seems worse in aligning employee interest with the long term interest of the company even compare to regular (unlimited allowed growth) equity, where each employee might hope that the valuation could get even higher.
Also:
So it seems the growth cap actually encourages short term thinking, which seems against their long term mission.
Do you also understand these incentives this way?