In a globalized and highly competitive market, rivalry among companies within the same sector is no longer seen solely as a conflict but as a driver of innovation and an opportunity for industry growth. This dynamic is evident today as Meta partners with Elon Musk to prevent OpenAI from becoming a for-profit company.
This is now apparent as Meta’s CEO, Mark Zuckerberg, seeks to thwart OpenAI’s attempt, led by Sam Altman, to relinquish its non-profit status—a move that places the tech giant on the same side as its longtime rival, Elon Musk.
According to a letter sent to California Attorney General Rob Bonta, the parent company of Facebook and Instagram warned that allowing the planned shift by the ChatGPT maker to a for-profit structure would have “seismic implications for Silicon Valley.”
“OpenAI should not be allowed to break the law by taking and repurposing assets it built as a charitable organization to reap potentially enormous private profits,” Meta wrote in the letter, dated last Thursday and first reported by The Wall Street Journal.
Earlier this month, Musk and former OpenAI board member Shivon Zilis asked a federal judge in San Francisco to block the pioneering AI company from transitioning to a for-profit organization.
It is also known that their attorneys compared OpenAI to a “Frankenstein, created from whatever corporate form serves the pecuniary interests of Microsoft and Altman at any given time.”
The filing for the injunction marked an escalation in Musk’s legal dispute with OpenAI, a company he co-founded in 2015 but later opposed after clashing with Altman. Since then, Musk has launched his own AI venture, xAI.
Meta sided with Musk in its letter to Bonta despite Zuckerberg and Musk having exchanged public and private criticism for years and nearly facing off in a cage fight last year.
“Although we also urge your office to take direct action, we believe Mr. Musk and Ms. Zilis are qualified and well-positioned to represent Californians’ interests in this matter,” the letter stated.
Neither Bonta’s office nor OpenAI immediately responded to requests for comment on Meta’s letter.
OpenAI, which has been governed by a non-profit board since 2015, is planning to restructure as a for-profit public benefit corporation. The company’s non-profit arm would continue to exist but would no longer hold control.
Altman’s firm responded to the injunction request last week, publishing a series of emails and text messages to argue that Musk initially supported OpenAI’s for-profit status but departed after failing to secure full control and a majority stake.
Last week, Altman claimed he was “not too concerned” about Musk’s influence over President-elect Trump’s administration.
Musk has become a key advisor to Trump and is poised to co-lead the Department of Government Efficiency (DOGE), tasked with eliminating government waste.
“It would be profoundly un-American to use political power, to the extent that Elon has it, to harm competitors and give his own businesses an unfair advantage,” Altman said at a New York Times conference. “And I don’t think people will stand for it. I don’t think Elon will do it either.”
Read more:
Sora price: how much does OpenAI’s video generator cost?
How to access Sora OpenAI, ChatGPT’s video generator
Foods that contain red dye 3, the additive that could be banned
