Mark Zuckerberg’s Meta supports Elon Musk in efforts to block OpenAI’s shift to a for-profit model

Meta Platforms has backed Elon Musk in an effort to prevent OpenAI from converting into a for-profit company. In a letter sent to California Attorney General Rob Bonta, Meta expressed concerns that this transition would set a dangerous precedent for Silicon Valley startups and potentially undermine nonprofit advantages.

Meta’s key concerns

Meta, first reported by the Wall Street Journal, highlighted that OpenAI’s move to a for-profit model could distort the traditional nonprofit-investment structure, allowing investors to benefit from for-profit gains while leveraging tax write-offs. “OpenAI’s conduct could have seismic implications for Silicon Valley,” Meta warned in its letter. “If OpenAI’s new business model is valid, non-profit investors would get the same for-profit upside as those who invest the conventional way in for-profit companies while also benefiting from tax write-offs bestowed by the government,” Meta was also stated as saying in its letter.

This intervention underscores the competitive AI landscape. Meta is a direct rival to OpenAI and has invested billions in developing its own advanced AI technologies to compete with OpenAI’s ChatGPT.

Meta also pointed out that Musk and business associate Shivon Zilis are well-positioned to represent public interests in this dispute. “Although we ask your office to take direct action, we believe that Mr. Musk and Ms. Zilis are qualified and well-positioned to represent the interests of Californians in this matter,” Meta was stated as writing in its letter.

Musk has filed multiple legal complaints against OpenAI, accusing the company of betraying its original nonprofit mission and conspiring with Microsoft to dominate the AI space.

Musk’s role and historical context

Elon Musk, who co-founded OpenAI in 2015 before leaving in 2018 amidst internal power struggles, has been a vocal critic of OpenAI’s shift toward profit-making. Musk’s company, xAI, has clashed with OpenAI’s restructuring plans, and his latest legal complaint came last month. Musk’s claims focus on OpenAI’s collaboration with Microsoft and its move toward a more profit-driven business strategy.

Meta has now added weight to Musk’s legal and strategic opposition, advocating for a review of whether OpenAI should be permitted to transition into a for-profit business model.

OpenAI responds

OpenAI has defended its choice to restructure as a for-profit public benefit corporation. As per the news report, last week, OpenAI published internal communications, including emails and texts arguing that Musk had previously supported the for-profit model before exiting leadership following a failed attempt to gain majority control.

A growing AI debate

OpenAI, the developer behind AI breakthroughs like ChatGPT, has faced mounting pressure to shift business strategies. Transitioning into a for-profit model would allow the organization to attract more funding, but critics fear it could compromise the original mission of promoting AI research transparently and ethically.

What’s next?

With Meta and Musk now actively pushing against OpenAI’s changes, the legal battle could shape the future of AI development, investor practices, and nonprofit protections. Whether Musk and Meta can force a pause on OpenAI’s for-profit ambitions remains to be seen as the political and legal dimensions of this clash intensify.