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Meta Platforms joins forces with Elon Musk to try to block OpenAI's for-profit transition - SiliconANGLE

Dec 16, 2024 - siliconangle.com
Meta Platforms Inc. has joined forces with Elon Musk to oppose OpenAI's transition to a for-profit company, arguing that it sets a dangerous precedent for the industry. Meta, in a letter to California Attorney General Rob Bonta, expressed concerns that OpenAI's move would allow nonprofit investors to gain for-profit benefits while enjoying tax advantages. This alliance between Meta and Musk is unexpected, given their past conflicts, but both parties are united in their efforts to prevent OpenAI's transition, which they claim undermines its nonprofit mission.

The opposition comes after OpenAI secured $6.6 billion in funding, with plans to maintain a nonprofit arm alongside its for-profit entity. Musk has previously accused OpenAI of betraying its nonprofit mission and has filed legal challenges against the company. Internal documents released by OpenAI suggest that Musk had initially pushed for a for-profit structure, although he later severed ties with the company. The authenticity of these documents has not been verified.

Key takeaways:

  • Meta Platforms and Elon Musk are collaborating to oppose OpenAI's transition to a for-profit company, arguing it sets a dangerous precedent for the industry.
  • Meta's letter to the California Attorney General supports Musk's legal actions against OpenAI, highlighting concerns about the implications for nonprofit investors.
  • OpenAI plans to maintain a nonprofit arm while transitioning, aiming to enhance its mission of ensuring AI benefits humanity.
  • Documents suggest Musk previously supported a for-profit structure for OpenAI, though he later severed ties after a proposed merger with Tesla was rejected.
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