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Meta Joins Musk In Opposing OpenAI's Transition To For-Profit Status
Meta, the parent company of Facebook, has joined Elon Musk in opposing OpenAI’s transformation from a nonprofit organization into a for-profit entity. This move underscores the ongoing tensions in the rapidly evolving AI industry.
Concerns Raised by Meta
According to The Wall Street Journal, Meta sent a letter to California Attorney General Rob Bonta, urging him to intervene in OpenAI’s transition. The company expressed concerns that the shift could have “seismic implications for Silicon Valley” and argued for regulatory oversight. While advocating for action, Meta acknowledged that Musk and former OpenAI board member Shivon Zilis are “qualified and well-positioned to represent the interests of Californians in this matter.”
Meta’s letter highlighted a broader issue, stating, “If OpenAI’s new business model is validated, nonprofit investors could reap the same financial benefits as for-profit investors while also enjoying tax advantages provided by the government.”
Competitive Landscape
This debate comes as Meta emerges as one of OpenAI’s main competitors in the AI sector. Meanwhile, Musk, who co-founded OpenAI before parting ways with the organization, has since launched his own AI venture, xAI. Musk has also filed legal action to halt OpenAI’s transition, arguing that the change conflicts with its original mission. Zilis, a former OpenAI board member, is a co-plaintiff in the lawsuit.
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In response, OpenAI released communications from Musk, asserting that he should “compete in the marketplace rather than in the courtroom.” The dispute highlights the growing competition and legal scrutiny surrounding the AI industry’s major players.
