Sam Altman makes ‘mic drop’ offer to every Y Combinator startup

The truth is, should OpenAI want to do that, it can, even when startups simply pay OpenAI for the tokens. By taking an equity stake, OpenAI may have more incentive for the startup’s success, not less.

Plus, as the former head of Y Combinator and a recurring guest speaker, Altman has as much access to every cohort and its ideas as he wants, deal or not.

The bigger question for this YC batch is whether a budget of tokens from a single AI player is worth giving up additional equity. Y Combinator already takes a 7% stake for a $500,000 cash investment in its standard deal. In exchange, startups get access to YC’s powerful Silicon Valley network of VCs, potential customers, and other founders.

But equity is also precious for startups. Seed investors frequently take 20% or so, too. And startups need equity as compensation for their early employees.

The bigger danger is that a startup will blow through its OpenAI token budget without enough to show for it, having surrendered equity in the process. Still, that may be better than paying for the tokens with cash, an even scarcer resource at that stage.