How did they even get this corporation owned by a foundation situation? That just seems like some kind of tax trick.

boomboomsubban 7 months ago | parent | next [-]

Yes. Mozilla was originally only the non profit, but it was ruled that selling the search rights violated nonprofit status. So they paid a couple million in back taxes and had to spin off a corporate entity that's fully owned by the nonprofit.

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Henchman21 7 months ago | parent [-]

Do you have any info on this lawsuit? I am struggling to find it.

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boomboomsubban 7 months ago | parent [-]

It wasn't a lawsuit, the IRS audited them. https://en.wikipedia.org/wiki/Mozilla_Corporation#IRS_audit

	▲	Henchman21 7 months ago \| parent [-]
		Thank you!

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no_wizard 7 months ago | parent | prev | next [-]

Novo Norodisk has a similar corporate structure, being owned majority by the Novodisk Foundation[0]

[0]: https://finance.yahoo.com/news/novo-nordisks-unique-structur...

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thayne 7 months ago | parent | prev [-]

It's a "we want to sell something, but non-profits aren't allowed to do that" trick. And it means the for-profit subsidiary has to pay normal taxes.

OpenAI is structured the same way, so they can sell access to their models. At least until it switches to being entirely for-profit, if that is allowed to happen.