Meta CEO Mark Zuckerberg has urged California Attorney General Rob Bonta to block OpenAI’s move from a non-profit to a for-profit organization. In a letter, Zuckerberg argued that OpenAI should not be allowed to profit from assets originally built as a charitable entity. He also referenced Elon Musk, who has opposed the restructuring and is involved in a legal dispute with the company. Musk, a co-founder of OpenAI, left the organization in 2018.
Zuckerberg warned that OpenAI’s shift could create a “paradigm shift” in Silicon Valley, encouraging startups to raise millions in tax-free donations before transitioning to a for-profit model once profitable. He called this potential change a “seismic impact” on the tech industry.
In response, OpenAI CEO Bret Taylor emphasized that the company’s restructuring would still prioritize its mission to benefit humanity. While OpenAI would become fully for-profit, part of its structure would remain non-profit to ensure ethical oversight. However, to proceed, OpenAI must either fully embrace the for-profit model or repay the latest round of investment funding.
Zuckerberg’s involvement may be linked to Meta’s own AI ambitions, as it seeks to compete with OpenAI’s ChatGPT through its LLaMA model. Meanwhile, Musk is entering the AI chatbot market with Grok, which will soon launch an app, joining rivals like Google and Anthropic. The shift in business models is adding to the growing competition in the AI industry.
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