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Meta asks California AG to block OpenAI’s conversion to for-profit | TechCrunch

Dec 14, 2024 - techcrunch.com
Meta, Facebook's parent company, is backing Elon Musk's legal efforts to prevent OpenAI from transitioning from a non-profit to a for-profit entity. In a letter to California Attorney General Rob Bonta, Meta expressed concerns that such a shift could have significant repercussions for Silicon Valley. The company urged Bonta to take action, highlighting that Musk and former OpenAI board member Shivon Zilis are well-suited to represent Californian interests in this issue. Meta argued that if OpenAI's new business model is approved, non-profit investors could unfairly benefit from for-profit gains and tax advantages.

Elon Musk, a co-founder of OpenAI who later parted ways with the company, has since launched a competing venture, xAI, and is pursuing legal measures to halt OpenAI's for-profit transition. Shivon Zilis is also involved in Musk's lawsuit. In response, OpenAI has released communications from Musk and contends that he should focus on competing in the market rather than through legal channels. Meta's involvement underscores the competitive tensions in the AI sector, where it has emerged as a significant rival to OpenAI.

Key takeaways:

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  • Meta is supporting Elon Musk's effort to block OpenAI's transition from a non-profit to a for-profit company.
  • Meta sent a letter to California Attorney General Rob Bonta, warning of the potential "seismic implications for Silicon Valley" if the shift is allowed.
  • Musk, a former co-founder of OpenAI, is taking legal action to prevent the transition, arguing for competition in the marketplace.
  • OpenAI has responded by publishing communications from Musk and advocating for competition in the marketplace rather than legal battles.
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