Facebook's parent company Meta is supporting Elon Musk's efforts to prevent OpenAI from converting from a nonprofit to a for-profit company.
The Wall Street Journal reported that Mehta sent a letter to California Attorney General Rob Bonta arguing that allowing the move would have a “seismic impact on Silicon Valley.” The company also called on Bonta to take “direct action,” saying Musk and former OpenAI board member Siobhan Gillis are “qualified and well-placed to represent the interests of Californians on this issue.” He also said.
“If OpenAI's new business model is effective, nonprofit investors could earn the same commercial returns as traditional investors in for-profit companies, while also benefiting from government tax breaks. ” Mehta wrote.
Meta has become one of OpenAI's big competitors in the AI market. Meanwhile, Musk, who was originally a co-founder of OpenAI, eventually split from the company, launched a rival company called xAI, and took legal action, including seeking an injunction to prevent the company from becoming a commercial company. (Mr. Gillis is also a plaintiff in Mr. Musk's lawsuit.)
OpenAI responded by releasing Musk's emails and texts and arguing that “he should be competing in the marketplace, not the courtroom.”