Meta Seeks to Block OpenAI's Shift to Profit-Driven Company

Meta, the parent company of Facebook, is supporting Elon Musk's efforts to prevent OpenAI from transforming from a non-profit organization into a for-profit company. In a letter to California Attorney General Rob Bonta, Meta argued that allowing this change would have "seismic effects for Silicon Valley." While urging Bonta to "take direct action," the company also stated that Musk and former OpenAI board member Shivon Zilis are "qualified and well-positioned to represent the interests of Californians in this matter."

Meta wrote, "If OpenAI's new business model is valid, non-profit investors will gain the same profit advantages as traditional investors in for-profit companies, while also benefiting from tax breaks provided by the state." Meta has become one of the largest competitors of OpenAI in the artificial intelligence market.