Zuckerberg's Meta seeks California Attorney General to block OpenAI from transitioning to a for-profit company. Meta accuses Sam Altman's company of "taking advantage" of its nonprofit status to raise billions of dollars.
"OpenAI wants to change its status while retaining all the benefits that got it to where it is today. This is wrong," Meta said in a letter to California Attorney General Rob Bonta. "OpenAI should not be allowed to flout the law, seize and reappropriate the assets it established as a charity, and use them for potentially huge private gain."
OpenAI is one of Meta's biggest competitors in the AI technology race. "Failure to hold OpenAI accountable for its choice to form a nonprofit could lead to a proliferation of similar startups that are nominally charitable until they are likely to be profitable," Meta wrote in the letter.
With this, Zuckerberg has sided with Elon Musk, who is in a legal fight to stop OpenAI from becoming a for-profit company. Musk, one of the 11 co-founders who broke away from OpenAI early on, launched a second action in November to stop OpenAI's transition and asked the court for an injunction against the company. The injunction request also claims that OpenAI and its largest corporate investor Microsoft have teamed up to create a "for-profit monopoly" and engaged in anti-competitive behavior, including targeting Musk's artificial intelligence company xAI. (BusinessInsider)