Meta, the parent company of Facebook, is backing Elon Musk’s attempt to prevent OpenAI’s transformation from a non-profit organization to a for-profit entity, according to a report by The Wall Street Journal. Meta has communicated its position to California’s Attorney General, Rob Bonta, emphasizing the significant impact such a transition could have on Silicon Valley’s landscape.
In its communication, Meta also appealed to Bonta for direct intervention, suggesting that Musk and former OpenAI board member Shivon Zilis are aptly qualified to safeguard Californians’ interests in this situation. Meta further highlighted that if OpenAI’s proposed business model is accepted, investors in non-profit organizations could enjoy the same profit margins as traditional for-profit investors, all while taking advantage of government-sanctioned tax deductions.
In the competitive AI market, Meta has emerged as a major rival to OpenAI. Musk, who was once a co-founder at OpenAI, parted ways with the company to establish xAI, a competing firm. He has also initiated legal proceedings, including an injunction request, to halt OpenAI’s transition to a for-profit entity, a move that Zilis supports as a co-plaintiff in Musk’s lawsuit.
In response, OpenAI publicized email exchanges and text messages from Musk, arguing that he should be focusing on business competition rather than pursuing legal action.
