(Reuters) – Meta Platforms is urging California’s attorney general to block OpenAI’s planned conversion to a for-profit company, the Wall Street Journal reported on Friday.
In a letter to Attorney General Rob Bonta on Thursday, Meta said allowing OpenAI to become a for-profit company sets a dangerous precedent for allowing startups to enjoy the benefits of nonprofits until they are ready to turn a profit, the WSJ reported.
“OpenAI’s behavior may be related to the earthquake in Silicon Valley. If the new OpenAI business plan is working, non-profits can get the same profits as those who invest in the usual way in for-profit companies while also benefiting from tax-subsidized government grants,” the WSJ report quotes Meta as saying in the letter.
Metra and the California AG’s office did not immediately respond to a Reuters request for comment.
Earlier on Friday, OpenAI asked a federal judge in California to deny billionaire Elon Musk’s request to stop the conversion of ChatGPT developer to a for-profit company.
Musk sued OpenAI and its CEO Sam Altman in August, alleging they breached contractual obligations by putting profit before the public good in pushing for AI development.
In November, Musk asked US District Judge Yvonne Gonzalez Rogers in Oakland for a preliminary injunction to block OpenAI from turning a profit.
“While our work continues and we continue to consult independent financial and legal advisors, any solution can make the non-profit continue to exist and thrive, and receive the full value of its current share in the OpenAI profit with increased capacity to follow its work,” said the chairman of OpenAI Bret Taylor in a statement.
In its letter, Meta said it supports Musk’s efforts to represent the public interest in deciding whether OpenAI will be allowed to become a for-profit company, the WSJ report added.
Musk, who has been a co-founder of OpenAI, has since founded a rival artificial intelligence company, xAI.
(Reporting by Rishabh Jaiswal in Bengaluru; Editing by Diane Craft)