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

The tech giants argue that OpenAI's shift from nonprofit status could set a risky precedent for Silicon Valley's business ethics.

Meta and Elon Musk have both urged California's attorney general to block OpenAI's planned transition to a for-profit entity, citing ethical and legal concerns.
Meta's letter claims that OpenAI's move could allow nonprofits to exploit tax benefits before converting to for-profit status, creating unfair advantages.
Elon Musk, a co-founder of OpenAI who left in 2018 after a power struggle, has filed legal complaints accusing the company of abandoning its original nonprofit mission.
OpenAI has defended its restructuring plan, stating that its nonprofit arm will retain ownership stakes and continue its mission to benefit humanity.
The dispute highlights growing tensions between leading AI developers, with Meta and Musk both competing against OpenAI in the rapidly evolving AI industry.