Since OpenAI announced its restructuring into a for-profit entity, it has sparked widespread criticism. Musk has been particularly vocal, directly stating that OpenAI's transition to a for-profit entity goes against its original intentions. Not only Musk has taken legal action to stop OpenAI's transition, but even the tech giant Meta has sent a letter to California's Attorney General requesting to block OpenAI's restructuring.
Meta warns in a letter, aiming to prevent the establishment of a bad precedent of 'non-profit turning into for-profit'
According to reports, on 12/12, Meta sent a letter to California Attorney General Rob Bonta requesting intervention in OpenAI's transition restructuring. Meta stated in the letter that allowing OpenAI to successfully transition from a non-profit organization to a for-profit entity would set a bad precedent for new entrepreneurs.
Meta stated: 'Such a model would allow non-profit investors to enjoy the same returns as traditional for-profit investors while also benefiting from government tax incentives, which is completely unfair.' Currently, the California Attorney General's office and Meta have not publicly responded.
(OpenAI will transition to a for-profit organization and has begun discussions with California regulators)
Meta and Musk's 'rare consensus' jointly defend the public interest
As early as August this year, Elon Musk, one of the co-founders of OpenAI, filed a lawsuit against OpenAI and its CEO Sam Altman, alleging that they used 'non-profit as a slogan to lure investments while prioritizing profit over public good.' In November, he applied for a preliminary injunction in a California court to halt OpenAI's transition plans.
OpenAI requested the federal court again on 12/13 to dismiss Musk's application and emphasized that the transition adjustments will ensure the continuation of the non-profit organization's values. OpenAI Chairman Bret Taylor stated: 'The restructuring plan will be based on professional advice from financial and legal consultants, and even if part of the structure transitions to a for-profit entity, the non-profit aspects will be retained, ensuring that the non-profit sector has sufficient resources and capabilities to continue promoting public welfare.'
Meta also expressed support for Musk in the OpenAI case, believing that Musk is defending the public interest from a public standpoint, and that the decision regarding OpenAI's transition should be made collectively by the public. It is rare for competitors in the tech industry, like Musk and Meta, to stand on the same side regarding OpenAI's transition.
(Musk accuses OpenAI of colluding with Microsoft to suppress xAI development: stealing over 40 million dollars, Altman and Stripe engaging in self-serving practices)
This article discusses the ongoing controversy over OpenAI's transition! Meta takes legal action to intervene, aligning with Musk. Originally appeared in Chain News ABMedia.