HomeGlobal Economic NewsZuckerberg and Musk Team Up to Challenge OpenAI’s Shift to For-Profit Model

Zuckerberg and Musk Team Up to Challenge OpenAI’s Shift to For-Profit Model

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Tech giants Mark Zuckerberg and Elon Musk are teaming up to challenge OpenAI’s plans to transition from a non-profit to a for-profit model.

According to the New York Post, this unusual alliance is making waves in the AI sector. Zuckerberg’s Meta, the parent company of Facebook and Instagram, is joining Musk in his legal fight against OpenAI, the creator of ChatGPT.

OpenAI aims to change its status to a for-profit public benefit corporation, a move that has raised concerns for both Zuckerberg and Musk. They fear this shift could lead to potential abuses of power, prompting their combined efforts to halt the transition.

In a letter to California Attorney General Rob Bonta, Meta has raised alarms about OpenAI’s planned restructuring, stating it could have “seismic implications for Silicon Valley.”

Meta asserted in the letter that OpenAI should not be permitted to bypass legal restrictions by repurposing assets originally created as a charity for potential private profit.

Earlier this month, Elon Musk and former OpenAI board member Shivon Zilis urged a federal judge in San Francisco to block OpenAI from transitioning to a for-profit model.

His attorneys likened OpenAI to a “Frankenstein, stitched together from whichever corporate forms serve the pecuniary interests of Microsoft and Altman at any given moment.”

Neither California Attorney General Rob Bonta’s office nor OpenAI responded immediately to requests for comment regarding Meta’s letter.

OpenAI, which has operated under a nonprofit board since 2015, plans to restructure as a for-profit public benefit corporation. While the nonprofit arm will still exist, it will no longer hold control over the organization.

Keywords: #Centsationalmarket #Zuckerberg #Musk #OpenAI #AI #ForProfit #TechAlliance #SiliconValley #PublicBenefit

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