OpenAI transformation controversy continues! Meta takes legal action to prevent, standing on the same side as Musk

Since OpenAI announced its reorganization as a for-profit company, it has sparked widespread criticism. Elon Musk, in particular, expressed his dissatisfaction with OpenAI's transformation into a for-profit enterprise. Not only did Musk take legal action to prevent OpenAI's transformation, but even the tech giant Meta sent a letter to the California Attorney General, requesting to block OpenAI's reorganization.

Meta issues warning to prevent the establishment of a negative precedent of "non-profit turning into profit".

According to reports, Meta sent a letter to California Attorney General Rob Bonta on 12/12 requesting intervention in the transformation and reorganization of OpenAI. In the letter, Meta stated that allowing OpenAI to successfully transition from a nonprofit organization to a for-profit corporation would set a bad precedent for entrepreneurs.

Meta said, "Such a model would allow nonprofit investors to enjoy the same returns as traditional for-profit investors, while taking advantage of the tax incentives provided by the government, which is completely unfair." The California Attorney General's Office and Meta have not yet responded.

(OpenAI will transition to a for-profit organization and has entered into discussions with California regulators)

Meta and Musk 'rare consensus,' jointly defending public interests

As early as August this year, Musk, one of the co-founders of OpenAI, filed a lawsuit against OpenAI and its CEO, Sam Altman, accusing them of using the slogan of non-profit to deceive investors and putting profit above public welfare. In November, he applied for a preliminary injunction to the California court, requesting a temporary halt to OpenAI's transformation plan.

OpenAI then again requested the federal court to reject Musk's application on 12/13, emphasizing that the restructuring will ensure the continuity of the nonprofit organization's value. OpenAI's chairman Bret Taylor said: 'The restructuring plan will be carried out according to the professional advice of financial and legal advisors. Even if some of the structure is transformed into a for-profit enterprise, the nonprofit part will be retained, and the nonprofit sector will have sufficient resources and capabilities to continue to promote public welfare development.'

Meta also expressed support for Musk and OpenAI in the letter, believing that Musk is standing up for the public interest and the transformation of OpenAI should be decided by the public. It is rare for Musk and Meta, both competitors in the technology industry, to stand on the same side regarding the transformation of OpenAI.

(Musk accuses OpenAI of colluding with Microsoft to suppress xAI development: cheated more than 40 million dollars, Altman and Stripe for self-benefit)

This article OpenAI transformation controversy continues to burn! Meta takes legal action to block it, standing on the same front as Musk. Initially appeared on Chain News ABMedia.