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Meta, Facebook’s parent company, supports Elon Musk’s efforts to prevent OpenAI from being converted from a non-profit to a for-profit company.
As reported by the Wall Street JournalMeta sent a letter to California Attorney General Rob Bonta arguing that allowing the shift would have “seismic implications for Silicon Valley.” While the company asked Bonta to take “direct action,” it also said that Musk and former OpenAI board member Shivon Zilis are “qualified and well-positioned to represent the interests of Californians in this matter.”
“If OpenAI’s new business model holds true, nonprofit investors will gain the same for-profit upside as those who traditionally invest in for-profit companies while also benefiting from government-granted tax breaks,” Meta wrote.
Meta has become one of OpenAI’s big competitors in the AI market. Meanwhile, Musk was originally a co-founder of OpenAI before eventually parting ways with the company, starting a competitor to xAI, and taking legal action that includes seeking an injunction to stop its transformation into a for-profit enterprise. (Zelis is also a plaintiff in Musk’s lawsuit.)
OpenAI responded by posting emails and texts from Musk, saying he “should compete in the marketplace rather than the courtroom.”
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