Meta and Elon Musk Unite to Oppose OpenAI's For-Profit Transition

Meta and Musk contend that OpenAI's shift to a for-profit model undermines its nonprofit origins and could set a troubling precedent for Silicon Valley.

Meta has formally requested that California Attorney General Rob Bonta block OpenAI's planned conversion from a nonprofit to a for-profit entity, citing potential legal and ethical concerns.
Elon Musk, a co-founder of OpenAI and now a rival through his company xAI, has filed lawsuits to halt OpenAI's restructuring, accusing it of abandoning its original mission for public benefit.
OpenAI has responded by publishing emails and texts showing Musk previously supported a for-profit model but withdrew after failing to secure control of the company.
Meta argues that OpenAI’s shift could encourage other startups to misuse nonprofit status for initial funding before pivoting to profit-making, potentially disrupting investment norms in Silicon Valley.
The legal battle, which includes allegations of monopolistic practices involving OpenAI and Microsoft, highlights broader tensions in the rapidly evolving AI sector and its ethical implications.