Meta takes a stand against OpenAI’s transformation, sparking controversy in tech circles.


December 15, 2024 by our News Team

Meta expresses concerns about OpenAI's potential transition from a non-profit to a for-profit entity and argues that it should not be allowed to use funds obtained under the non-profit status, while also calling for an investigation into its past practices.

  • Meta is concerned about the potential negative impact of OpenAI's transition from a non-profit to a commercial entity.
  • Meta argues that this move could set a dangerous precedent in the market.
  • Meta suggests that authorities should investigate OpenAI's past practices during its non-profit phase.


After Elon Musk entered into a legal battle against OpenAI to prevent the company from becoming a for-profit entity, it seems that Meta is also interested in pursuing a case against them. Meta recently sent a letter to the California court expressing concerns about the possibility of OpenAI transitioning from a non-profit organization to a commercial company. This move goes against OpenAI’s desires and its growth within the AI market.

According to Meta, this transformation could set a dangerous precedent in the market, where similar entities start off as non-profits and then switch to commercial ventures once they reach a certain level of success. In late November, Elon Musk also attempted to block OpenAI’s conversion, a case that is still ongoing in US courts. Meta argues that OpenAI received millions of dollars in investments under the premise of being a non-profit and now wants to change that while retaining all the previous benefits.

Meta further asserts that OpenAI should not be allowed to become a commercial entity using funds that were obtained under the non-profit status. The letter sent to lawmakers also suggests that authorities should investigate OpenAI’s past practices during its non-profit phase to assess any potential discrepancies.

This letter comes just days after OpenAI revealed old communications between its founders and Elon Musk, where Musk indicated that the entity should transition into a for-profit company, contradicting his current stance.

Meanwhile, OpenAI defends itself by stating that it will always maintain its non-profit structure, regardless of any future restructuring, but acknowledges that all decisions are being made with the guidance of experts in the field.

Despite this, Meta’s new stance may put more pressure on OpenAI and its plans to become a financially-driven commercial entity.

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