- OpenAI's IPO is historic but poses unique risks due to its control by a 501(c)(3) charitable nonprofit.
- The EyesOnOpenAI coalition submitted a letter to the SEC urging full disclosure of governance risks and potential financial consequences for investors.
- OpenAI's nonprofit foundation controls the board via special Class N stock and can divest equity while retaining control.
- California Attorney General's conditional approval of OpenAI's restructuring is under ongoing investigation.
- No independent appraisal confirmed fair value for charitable assets when OpenAI's for-profit arm became a PBC, risking legal challenges.
- Investors bear the brunt of conflicts between shareholder returns and charitable obligations, unlike competitors Microsoft, Google, and Anthropic.
- The SEC should ensure transparency or halt the IPO to protect investors and the economy from potential fallout.