ccording to the Wall Street Journal, the social media platform, Meta, had recently sent a letter to Rob Bonta, the California Attorney General which argues that the
OpenAI desire to shift to a for-profit model business might have various implications for the Silicon Valley area.
Meta company asked Rob Bonta to take immediate action over this matter and also declared that Elon Musk along with Shivon Zilis, a former OpenAI board member have the full Meta support to represent the Californians' concerns about this matter.
“If OpenAI’s new business model is valid, non-profit investors would get the same for-profit upside as those who invest the conventional way in for-profit companies while also benefiting from tax write-offs bestowed by the government,”, Meta stated in their letter.
It should be mentioned that Meta recently has become a big competitor for OpenAI due to all the improvements made in the artificial intelligence market.
Elon Musk was initially a co-founder of the OpenAI ChatGPT startup, but after some time the two parted ways and Elon Musk launched the OpenAI’s competitor, xAI. Also, he recently filed a lawsuit in which he seeks to block OpenAI’s desire to shift toward a for-profit business model.
OpenAI startup initially started as a non-profit business, which experienced real success in the artificial intelligence area with its popular ChatGPT, platform that records a year revenue of billions of dollars.
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In recent period, Sam Altman the CEO of OpenAI, expressed feelings that the company must shift its current status in order to be more attractive to all investors. It’s important to know that the company’s stakes are huge, as OpenAI ChatGPT will be required to repay the amount that managed to raise this year if it fails within two years to change its status to a for-profit business model.
In the letter to the government, the social media platform states that all of OpenAI’s actions could have a significant impact on the Silicon Valley area. The social media platform also stated that “investors to launch organizations as non-profits, collect hundreds of millions of dollars in tax-free donations to support research and development, and then assume for-profit status as its technology becomes commercially viable.”
Bret Taylor, the OpenAI’s ChatGPT board chair, argued in response to the Meta letter that the current non-profit board of directors of the OpenAI ChatGPT company is “focused on fulfilling our fiduciary obligation by ensuring that the company is well-positioned to continue advancing its mission of ensuring AGI benefits all of humanity.”
The situation remains uncertain for now, but stay tuned for further updates on OpenAI’s efforts to transition to a for-profit business model.
By
Eva Robinson
•
December 16, 2024 3:15 PM
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