Meta, the parent company of Facebook, has joined Elon Musk in opposing OpenAI’s transition from a nonprofit to a for-profit organization.
According to a report from The Wall Street Journal, Meta addressed a letter to California Attorney General Rob Bonta, warning that approving OpenAI's shift could have significant consequences for the tech industry in Silicon Valley. Meta urged Bonta to intervene directly in the matter. Additionally, the company expressed confidence in Musk and former OpenAI board member Shivon Zilis as capable advocates for the public interest in this issue.
Meta’s argument hinges on the potential financial implications of the transition. The company pointed out that, if OpenAI’s new model is permitted, nonprofit investors could gain the same financial returns as conventional investors in for-profit ventures. This would allow them to simultaneously reap the benefits of government tax incentives offered to nonprofits.
The rivalry between Meta and OpenAI has intensified as both companies compete in the rapidly evolving AI market. Elon Musk, a co-founder of OpenAI, has also taken legal action to block the organization’s for-profit conversion. After parting ways with OpenAI, Musk founded his own AI company, xAI, and recently filed a lawsuit seeking to halt OpenAI's transition. Shivon Zilis, a former board member at OpenAI, is also a plaintiff in the case.
In response to the lawsuit, OpenAI has defended its position by releasing emails and messages from Musk. The company argued that Musk should focus on market competition instead of resorting to legal battles.
