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Now Meta is trying to stop OpenAI’s for-profit conversion too

Dec 14, 2024 - engadget.com
Meta has sent a letter to California's Attorney General, Rob Bonta, urging him to prevent OpenAI from transitioning to a for-profit entity. Meta argues that such a move would be inappropriate and could lead to a surge of similar ventures that initially present themselves as charitable but later seek profit. The letter, reported by The Wall Street Journal and published in full by The Verge, follows an injunction filed by Elon Musk in November to block OpenAI's conversion. Meta contends that OpenAI raised significant funds under its nonprofit mission and should not be allowed to change its status while retaining the benefits that facilitated its growth. The letter also requests an investigation into OpenAI's past nonprofit practices.

Meta's letter supports Elon Musk and Shivon Zilis in representing public interests in Musk's lawsuit against OpenAI, which was revived in August. In response, OpenAI released a timeline of communications from Musk advocating for a for-profit transition with him leading. OpenAI board chair Bret Taylor stated that any restructuring would ensure the nonprofit's continued existence and value, allowing it to pursue its mission effectively. Engadget has reached out to OpenAI for comment on the situation.

Key takeaways:

  • Meta has sent a letter to California’s attorney general urging him to prevent OpenAI from converting to a for-profit company, arguing that it would be inappropriate and could lead to similar ventures exploiting nonprofit status for profit.
  • Meta's letter supports Elon Musk's injunction to block OpenAI's conversion and suggests that Musk and Shivon Zilis represent public interests in the lawsuit against OpenAI.
  • OpenAI has published a timeline showing Elon Musk's previous support for OpenAI becoming a for-profit entity with him leading it.
  • OpenAI board chair Bret Taylor stated that any restructuring would ensure the nonprofit's continued existence and value, while enhancing its ability to pursue its mission.
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