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Meta backs Musk's lawsuit against OpenAI's profit conversion

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by Giorgi Kostiuk

a year ago


Meta has urged California's attorney general to reject OpenAI’s request to transition to a for-profit organization, citing potential negative implications for the industry.

Meta's Appeal to California Authorities

Meta warned that a favorable verdict for OpenAI would set a dangerous precedent, allowing startups to easily transition from non-profit to for-profit status. In the letter, Meta highlighted that OpenAI's business model change would have a "seismic effect" on Silicon Valley.

OpenAI's Response to Musk's Lawsuit

OpenAI Chairman Bret Taylor announced that the company will maintain a non-profit arm and undergo restructuring to ensure its goal remains intact. OpenAI noted that Musk was previously aware and supportive of their plan.

The Unlikely Alliance between Musk and Zuckerberg

Despite past rivalries between Zuckerberg and Musk, Meta supports the efforts made by Musk and Shivon Zilis in representing California's interests in this matter. This marks Meta's first public stance on the issue.

The situation around OpenAI and Musk's lawsuit highlights the complex relationships between major players in the AI industry and underscores the importance of transparency in corporate status changes.

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