Meta, the tech giant founded by Mark Zuckerberg, is urging the US government to block OpenAI's planned transition from a non-profit to a for-profit entity. In a letter sent to California Attorney General Rob Bonta, Meta argues that 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, first reported by The Wall Street Journal, expresses Meta's deep concerns about OpenAI's attempt to shed its non-profit status, which could lead to a proliferation of similar startup ventures that are notionally charitable until they become profitable. Meta believes that OpenAI's conduct could have seismic implications for Silicon Valley, allowing investors to launch organizations as non-profits, collect hundreds of millions of dollars in tax-free donations, and then assume for-profit status as their technology becomes commercially viable.

OpenAI, founded in 2015, originally filed its certificate of incorporation with the State of Delaware as a non-profit corporation, stating that it was organized exclusively for charitable and educational purposes. The company reaffirmed this commitment on its website, stating that it would pursue its project through private means bound by strong commitments to the public good. However, OpenAI now wants to change its status while retaining all the benefits that enabled it to reach its current point, which Meta argues is wrong.

Meta's letter also notes that OpenAI raised billions of dollars in capital from investors to further its purported mission, representing to the State of California and the world that it would be run without any profit motivation. Investors and the public relied on that assurance, and Meta believes that 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.

Interestingly, Meta's letter suggests that Elon Musk, who was involved in OpenAI's creation and operations, is "qualified and well positioned to represent the interests of Californians in this matter." This is notable given that Musk and Mark Zuckerberg were talking about fighting in a cage match just last year. Meta is committed to openness and transparency in the transformative field of AI, and it believes that OpenAI's charitable promise to develop safe and broadly beneficial AI free from commercial pressures is an important one that should be kept.

The implications of OpenAI's planned transition are far-reaching, and Meta's letter highlights the need for urgent action to protect investors and consumers alike. As the AI landscape continues to evolve, it remains to be seen how this development will shape the future of AI research and development.