Now Meta is trying to stop OpenAI’s for-profit conversion too
Meta sent a letter to California’s attorney general on Thursday urging him to stop OpenAI from converting to a for-profit company, a move that Meta says would be “wrong” and “could lead to a proliferation of similar start-up ventures that are notionally charitable until they are potentially profitable.” The letter from Meta Platforms to Attorney General Rob Bonta, first reported on by The Wall Street Journal, comes on the heels of an injunction filed by Elon Musk at the end of November that also asked for OpenAI’s conversion to be blocked.
Meta argues in its letter, which The Verge has published in full, that OpenAI was able to raise billions of dollars from investors under its original nonprofit mission and now “wants to change its status while retaining all of the benefits that enabled it to reach the point it has today.” It goes on to say, “OpenAI should not be allowed to flout the law by taking and reappropriating assets it built as a charity and using them for potentially enormous private gains.” The letter also calls upon the attorney general to look into OpenAI’s past practices as a nonprofit. Engadget has reached out to OpenAI for comment.
Meta’s letter also voices support for Elon Musk and Shivon Zilis to represent public interests in Musk’s lawsuit against OpenAI, which was revived in August. On Friday, OpenAI published a timeline citing emails and other communications from Elon Musk to show how he previously pushed for OpenAI to become a for-profit with him at the helm.
In a statement shared with The Verge in response to Meta’s letter, OpenAI board chair Bret Taylor said, “While our work remains ongoing as we continue to consult independent financial and legal advisors, any potential restructuring would ensure the nonprofit continues to exist and thrive, and receives full value for its current stake in the OpenAI for-profit with an enhanced ability to pursue its mission.”
This article originally appeared on Engadget at https://www.engadget.com/big-tech/now-meta-is-trying-to-stop-openais-for-profit-conversion-too-181623327.html?src=rss
Source: engadget
Now Meta is trying to stop OpenAI’s for-profit conversion too