Meta is willing to do whatever it takes to prevent OpenAI from becoming a for-profit company

Meta has requested California Attorney General, Rob Bonta, to prevent OpenAI from converting into a for-profit company, according to an article in The Wall Street Journal. In a letter sent on Thursday, Meta warned that allowing this change would create a dangerous precedent, as startups could take advantage of tax benefits as non-profit organizations before transforming into profit-making entities. “OpenAI’s conduct could have seismic implications for Silicon Valley,” the letter states.

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Bret Taylor, president of OpenAI, stated that the organization will maintain a non-profit arm after the restructuring. According to him, this structure will enhance its mission to “ensure that artificial intelligence benefits humanity.” However, Meta, a direct rival of OpenAI, fears that the latter’s alliance with Microsoft and Apple will give it a significant advantage in AI development. OpenAI’s relationship with Microsoft, its largest investor, and Apple, which integrated ChatGPT into its technology, has further fueled the discord with the parent company of Facebook.

Elon Musk, co-founder of OpenAI and now one of its biggest critics, has also questioned this transition, claiming that OpenAI betrayed its original mission by becoming a for-profit entity. In recent documents, OpenAI alleged that Musk initially supported the idea of a hybrid model but withdrew when he did not gain majority control of the organization. Musk, however, insists that he was manipulated into supporting an initiative that went against his initial vision.

Meta also supports Musk and Shivon Zilis, his business associate, to represent the public interest in the dispute. The company emphasized that both are “qualified and well-positioned” to address this issue before the U.S. Attorney General.

This tension reflects the great struggle among tech giants for control of the future of AI. Musk accuses OpenAI, which recently reached a valuation of 157 billion dollars after a funding round, of favoring lucrative investors while using its non-profit structure as a cover. In short, a battle marked by cross interests and personal rivalries that is far from over, and that could end up defining the AI landscape.

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