OpenAI exits SF HQ after Elon Musk stops paying their rent

[samspenc]

https://therealdeal.com/sanfrancisco/2024/08/26/openai-exits-san-francisco-hq-after-split-with-elon-musk/

[robswc]

How in the world was Musk still paying for it? lol.

[samspenc → robswc]

I was very surprised by this as well. From the article: "The person familiar with OpenAI’s departure said the company’s rent had not been covered by a typical lease, but rather a less formal agreement paid for by Musk, the billionaire who also controls automaker Tesla and social media firm X."

Surprising OpenAI and Microsoft were OK with this after a $13B investment.

[JumpCrisscross → samspenc]

> Surprising OpenAI and Microsoft were OK with this

I’d give it a 50/50 that the Microsoft deal team is learning about this now.

[stoobs → JumpCrisscross]

I guess their due diligence was less than stellar in that case?

[thelastparadise → stoobs]

Unknown unknowns

[bastawhiz → robswc]

Musk was renting the space and it seems had a contract with OpenAI allowing it to use it at no cost. Neuralink had also been headquartered there.

[valianteffort → robswc]

Probably earmarked from his initial $100m seed money

[metadat]

It does seem this person stiffs his contracts quite frequently (did the same move with Twitter HQ office). Good to know.

[JumpCrisscross → metadat]

Did we read the same article? Musk honored a handshake deal to pay the rent of a now-competitor.

[hnmelb → metadat]

Musk is offering it for sublease. That means Musk is still paying the rent, just that he would let it out to someone else rather then occupy it himself.

[metadat → hnmelb]

Thanks for clarifying, cheers.