Meta asks the California AG to block the conversion of OpenAI to profit

Facebook’s parent company Meta is supporting Elon Musk’s efforts to prevent the conversion of OpenAI from a non-profit company to a profitable one.

According to the Wall Street JournalMeta sent a letter to California Attorney General Rob Bonta arguing that allowing the change would have “disruptive effects on Silicon Valley.” And while the company asked Bonta to “take direct action,” it said Musk and former OpenAI member Shivon Zilis “are qualified and responsible to represent the interests of the people of California in this matter.”

“If OpenAI’s new business model is approved, non-profit investors will receive the same benefits as for-profit investors while also benefiting from tax incentives provided by the government,” wrote Meta.

Meta has become one of OpenAI’s biggest competitors in the AI ​​market. Musk, meanwhile, was a co-founder of OpenAI before leaving the company, starting the xAI campaign, and running a lawsuit involving it. seeking an injunction stopping its transformation into profit. (Zilis is also a defendant in Musk’s lawsuit.)

OpenAI responded with printing emails and documents from Musk and argued that “they should compete in the market and not in the courtroom.”