Meta asks California attorney general to stop OpenAI from turning into a for-profit company

Meta Platforms is stepping into the heated debate surrounding OpenAI’s shift to a for-profit company. According to a report by The Wall Street Journal, Meta has reached out to California Attorney General Rob Bonta, urging him to block OpenAI’s planned conversion.

In a letter dated Thursday, Meta expressed concerns that allowing OpenAI to become for-profit could set a risky example for startups. The letter suggests that startups could use nonprofit advantages to grow and then switch to a profit-driven model when it benefits them. Meta believes this approach could unfairly combine tax benefits and profit potential, shaking up the rules for Silicon Valley businesses.

The conflict doesn’t stop there. Earlier on Friday, OpenAI asked a federal judge in California to dismiss Elon Musk’s request to halt its transition to a for-profit structure. Musk, a co-founder of OpenAI, has been vocal about his opposition, suing OpenAI in August. He claims the company has put profits ahead of its original mission to prioritize the public good.

Musk isn’t just fighting from the sidelines. He’s started his own AI company, xAI, to compete directly with OpenAI. Meanwhile, OpenAI’s chairman, Bret Taylor, released a statement defending the potential restructuring, saying the nonprofit side of OpenAI would continue to operate and thrive.

Meta’s letter also backs Musk’s effort to involve public interests in the decision-making process, highlighting how high the stakes are for the future of AI in Silicon Valley. Neither Meta nor the California attorney general’s office has responded to requests for comment on the matter so far.