Meta Platforms CEO Mark Zuckerberg has joined rival Elon Musk in opposing OpenAI’s shift to a for-profit model, calling for government intervention.
Driving the News
Meta sent a letter to California Attorney General Rob Bonta last week, opposing OpenAI’s proposed restructuring from a nonprofit to a for-profit public benefit corporation. The letter argues that the move could lead to “seismic implications for Silicon Valley.”
OpenAI, led by CEO Sam Altman, has been under fire for its planned transition.
Musk and former OpenAI board member Shivon Zilis filed an injunction earlier this month to block OpenAI’s restructuring.
Why It Matters?
OpenAI, which created ChatGPT, started as a nonprofit in 2015 with a mission to safely advance artificial intelligence. Critics, including Musk and now Meta, argue that its for-profit switch could benefit private interests at the expense of its original charitable mission. Meta’s letter claims OpenAI is “flouting the law” by leveraging nonprofit assets for private financial gains.
The Backstory
Elon Musk: Musk co-founded OpenAI in 2015 but later split from the company after a power struggle with Altman. He has since launched his own AI firm, xAI.
OpenAI’s Plan: OpenAI’s nonprofit arm would continue to exist but would lose control over the restructured for-profit entity.
Meta’s Position: Despite public clashes and competition between Zuckerberg and Musk, Meta expressed support for Musk and Zilis, saying they are “well positioned to represent the interests of Californians.”
What They’re Saying
OpenAI: OpenAI defended its restructuring, claiming Musk initially supported the for-profit model but left when denied full control and a majority stake.
Sam Altman: At a New York Times event, Altman criticized Musk’s influence and suggested it would be “un-American” to use political power to harm competitors.
The Big Picture
This dispute highlights growing tensions in the AI industry, where companies are navigating between innovation, ethical concerns, and profit motives. Meta’s unexpected alignment with Musk signals broader anxieties about OpenAI’s dominance and restructuring.
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