xAI founder Elon Musk has received support from Mark Zuckerberg's Meta Platforms Inc. META in his fight against Sam Altman-led OpenAI's for-profit transition.
What Happened: In a letter to California Attorney General Rob Bonta, Meta argues that OpenAI should not convert assets developed under its non-profit status for private gain, as reported by The Wall Street Journal.
The letter suggests that Musk is well-suited to represent Californian interests in this matter. This move is significant given Musk’s recent public disagreements with Mark Zuckerberg over AI advancements.
OpenAI, originally a non-profit, gained commercial success with ChatGPT, generating substantial revenue. CEO Sam Altman has stated that transitioning to a for-profit model is essential for attracting investors and sustaining growth.
However, Meta contends that this shift could have major implications for Silicon Valley, potentially encouraging other startups to exploit non-profit status for initial funding.
Meta’s concerns also stem from its competitive interests, as Zuckerberg aims for Meta AI to become a leading assistant globally. The company is committed to transparency in AI development and insists on OpenAI adhering to its original charitable mission.
Why It Matters: The conflict over OpenAI’s transition has been brewing for some time. Musk has been vocal about his opposition, even filing for a court injunction to block the transition.
Musk’s legal team has requested an injunction from Judge Yvonne Gonzalez Rogers to prevent OpenAI from becoming a for-profit entity.
Further complicating the situation, OpenAI has accused Musk of undermining the company after failing to gain control during earlier negotiations. OpenAI revealed that Musk initially supported restructuring the organization into a for-profit entity in 2017 but abandoned the idea when his proposal to hold majority control was rejected.
This legal and public battle highlights the broader concerns about the commercialization of AI technology and the ethical implications of transitioning from non-profit to for-profit models. The outcome of this dispute could set a precedent for other AI companies considering similar transitions.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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