non-competes are extremely hard to enforce in California. Sam would literally have to download Open AI trade secrets into a USB drive to get in trouble.
That is only the case for rank and file employees. From my understanding executives, particularly ones with large equity stakes, are not exempt from non-competes. Sam doesn't have equity though, and I am not sure if non-profit status changes anything, but regardless I suspect any non-compete questions would need to be settled in court. Probably not something to stop Sam from starting a competitor as he could afford the lawyers and potential settlement. I suspect the MSFT move has more to do with keeping the ball rolling and keeping Satya happy.
> From my understanding executives, particularly ones with large equity stakes, are not exempt from non-competes.
Your understanding is incorrect. There are some exceptions where noncompetes are allowed in California, but they mostly involve the sale or dissolution of business entities as such. There is no exception for executives, and none for people who happen to have equity stakes of any size.
