(Reuters) – Meta Platforms (NASDAQ:) is urging California's attorney general to block OpenAI's planned transformation into a for-profit company, the Wall Street Journal reported on Friday.
In a letter to Attorney General Rob Bonta dated Thursday, Meta said allowing OpenAI to become a for-profit company would set a dangerous precedent by allowing startups to enjoy the benefits of nonprofit status until they prepare to turn a profit, the Wall Street Journal reported.
“OpenAI's behavior could have seismic effects on Silicon Valley. If OpenAI's new business model holds, nonprofit investors will get the same profit upside as those who invest the traditional way in for-profit companies while also benefiting from a tax break.” The advantages it granted government,” the Wall Street Journal report quoted Meta as saying in the letter.
