Sam Altman offers $2M OpenAI tokens

Sam Altman offered on May 20 to put $2 million in OpenAI tokens into every startup in Y Combinator’s current batch in exchange for equity, according to TechCrunch and Business Insider. The proposal was made during a Y Combinator event on Tuesday night, TechCrunch reported. (techcrunch.com) Altman later wrote on X that OpenAI had offered to invest “$2M in tokens into every startup in the current yc batch” and said he was “excited to see what will happen with tokenmaxxing startups.” ### What exactly is being offered? TechCrunch reported that the offer is not cash but OpenAI tokens that startups can use to build products on OpenAI’s systems. Business Insider similarly described the package as $2 million in tokens in exchange for equity in Y Combinator-backed startups. (techcrunch.com) The Information first reported on May 20 that the package amounted to $2 million in OpenAI tokens for each startup in the current accelerator batch, according to other outlets that cited its report. (techcrunch.com) ### How many companies are covered? Y Combinator’s current cohort includes about 169 startups, according to TechCrunch’s reading of the accelerator’s directory. If every company accepted, the face value of the token offer would run into the hundreds of millions of dollars, based on the reported $2 million per startup figure. (techcrunch.com) That arithmetic is an inference from the reported cohort size and offer amount. (businessinsider.com) TechCrunch said Altman’s proposal covered “every startup in the current class,” and Business Insider described it as applying to Y Combinator’s current batch. (businessinsider.com) ### How would OpenAI get equity back? Y Combinator managing director Jared Friedman told TechCrunch the deal would be offered as an “uncapped SAFE.” He said the investment would convert in the startup’s next priced round, “typically the Series A.” (techcrunch.com) TechCrunch reported that the amount of equity a startup gives up cannot be determined when it signs because conversion depends on the valuation set in that later financing round. (techcrunch.com) The outlet added that an uncapped SAFE does not set a valuation ceiling, which can reduce dilution for founders if the company’s valuation is higher when the note converts. ### Why did this get called a “mic drop moment”? YC partner Tyler Bosmeny called the proposal a “mic drop moment,” according to TechCrunch’s May 20 report from the event. The phrase captured how unusual the structure was: a platform company offering usage credits at scale in return for future equity, rather than writing a standard cash check. (techcrunch.com) That description is based on the terms reported by TechCrunch and Business Insider. Altman framed the offer publicly around product building. In his X post quoted by multiple outlets, he said he wanted to see what “tokenmaxxing startups” would build with the credits. (techcrunch.com) ### What happens next for founders in the batch? Jared Friedman told TechCrunch the next formal step is conversion at a startup’s first priced round, usually a Series A. (techcrunch.com) That means founders considering the offer would not know the final equity cost at signing. TechCrunch’s report was published on May 20, and Altman’s public post appeared the same day. (techcrunch.com) The immediate next participants are the startups in Y Combinator’s current batch and OpenAI, which would execute the uncapped SAFE agreements if companies choose to take the tokens.