Meta asks California AG to block OpenAI from becoming a for-profit enterprise

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 competing company xAI, and taking legal action that includes… She seeks an injunction To stop it becoming profitable. (Zelis is also a plaintiff in Musk’s lawsuit.)

OpenAI answered by Post emails and texts of Musk and argues that he “should compete in the marketplace, not in the courtroom.”