Janice R. Andrews
Meta Platforms has urged California Attorney General Rob Bonta to block OpenAI’s proposed transition to a for-profit organization. In a letter sent Thursday, Meta criticized the move as a betrayal of OpenAI’s original nonprofit mission, which enabled the company to secure billions in funding. This follows a similar legal challenge by Elon Musk in late November opposing the shift.
The letter, first reported by The Wall Street Journal and later published by The Verge, accuses OpenAI of attempting to gain private benefits from assets developed under its nonprofit framework. “OpenAI should not be allowed to flout the law by taking and reappropriating assets it built as a charity and using them for potentially enormous private gains,” Meta argued.
Meta also called for an investigation into OpenAI’s nonprofit activities, warning against a precedent where startups exploit nonprofit status for growth before converting to profit-driven models. Additionally, the letter supports Elon Musk and Shivon Zilis in representing public interests in Musk’s revived lawsuit against OpenAI.
In response, OpenAI board chair Bret Taylor defended the organization’s plans, stating that any restructuring would preserve the nonprofit’s existence and ensure it receives full value for its stake in the for-profit entity. Taylor noted that OpenAI is consulting independent advisors to align its mission with its future business goals.
The dispute underscores growing tensions in the tech industry over accountability and ethical practices in AI development. Meta’s criticism highlights broader concerns about companies exploiting nonprofit frameworks, while OpenAI emphasizes its commitment to advancing its mission within a sustainable business model.
As the legal challenges continue, the debate raises significant questions about balancing innovation, public interest, and profit in the competitive world of artificial intelligence.
