Meta Platforms is calling on California's attorney general to prevent OpenAI from transitioning to a for-profit entity, as reported by the Wall Street Journal on Friday.
In a letter addressed to Attorney General Rob Bonta, dated Thursday, Meta expressed concerns that permitting OpenAI to operate as a for-profit organization would create a troubling precedent, allowing startups to benefit from nonprofit status until they are ready to generate profits, according to the WSJ.
Meta's letter stated, "OpenAI's actions could have significant repercussions for Silicon Valley. If OpenAI's new business model is deemed acceptable, nonprofit investors would gain the same financial benefits as traditional for-profit investors while also enjoying tax deductions provided by the government."
Neither Meta nor the California Attorney General's office responded immediately to a request for comment from Reuters.
Earlier on Friday, OpenAI sought a federal judge's dismissal of a request from billionaire Elon Musk to block its transition to a for-profit model.
Musk filed a lawsuit against OpenAI and its CEO Sam Altman in August, alleging that they prioritized profits over public welfare in their efforts to advance artificial intelligence.
In November, Musk requested U.S. District Judge Yvonne Gonzalez Rogers in Oakland to issue a preliminary injunction to prevent OpenAI from changing to a for-profit structure.
OpenAI chairman Bret Taylor stated, "As we continue to consult with independent financial and legal advisors, any potential restructuring will ensure that the nonprofit remains viable and receives full value for its current stake in the OpenAI for-profit, while enhancing its ability to fulfill its mission."
In its correspondence, Meta indicated its support for Musk's initiative to advocate for public interests regarding OpenAI's potential transition to a for-profit company, as noted by the WSJ.
Musk, a co-founder of OpenAI, has subsequently established a rival artificial intelligence firm known as xAI.