The Wall Street Journal reported Friday that Meta Platforms is urging California’s attorney general to block plans to spin OpenAI into a for-profit company.
In a letter to Attorney General Rob Bonta on Thursday, META said allowing OpenAI to become a for-profit company would set a dangerous precedent of allowing startups to enjoy the benefits of nonprofit status, the WSJ reports. will persist until they are ready to become profitable.
“OpenAI’s conduct could have seismic effects for Silicon Valley. If OpenAI’s new business model is legitimate, nonprofit investors will reap just as much profit as those investing traditionally in for-profit companies.” , They will also benefit from tax rebates given by the government,” the WSJ report quoted Meta as saying in the letter.
META and the California AG’s office did not immediately respond to Reuters requests for comment.
Earlier on Friday, OpenAI asked a federal judge in California to reject billionaire Elon Musk’s request to block the ChatGPIT maker from turning itself into a for-profit company.
Musk sued OpenAI and its CEO Sam Altman in August, claiming they violated contract provisions by prioritizing profits over the public good in pursuing AI.
In November, Musk asked U.S. District Judge Yvonne Gonzalez Rogers in Oakland for a preliminary injunction to prevent OpenAI from converting into a for-profit structure.
“While our work continues as we continue to consult with independent financial and legal advisors, any potential restructuring will ensure that the non-profit will continue to survive and thrive, and that the for-profit OpenAI will continue to share its interests in OpenAI.” will receive full value for the current stake, as well as the ability to further its mission, OpenAI President Brett Taylor said in a statement.
Meta said in her letter that she supports Musk’s effort to represent the public’s interests in deciding whether OpenAI will be allowed to become a profitable company, the WSJ reported.
Musk, who co-founded OpenAI, has since launched a competing artificial intelligence company, XAI.
© Thomson Reuters 2024
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