Meta urges US government to stop OpenAI’s shift to for-profit model

Dear General Bonta:

The Concern Over OpenAI’s Non-Profit Status

Meta Platforms, Inc. (“Meta”), a California company specializing in Generative AI technology, is deeply concerned about OpenAI’s recent attempt to transition from a non-profit organization to a for-profit entity. This move raises significant questions about accountability and the potential impact on the tech industry. We urge a thorough review of this proposed transaction, particularly regarding the transfer of assets from OpenAI’s non-profit entity to other entities. Failing to hold OpenAI accountable for its initial non-profit status could set a dangerous precedent for similar ventures in the future, posing risks to investors and consumers. It is crucial to pause all for-profit activities of OpenAI and its related entities to safeguard the interests of all stakeholders.

The Origins of OpenAI and Its Non-Profit Commitment

In 2015, OpenAI filed its original certificate of incorporation with the State of Delaware, outlining its commitment to operate as a non-profit organization dedicated to charitable and educational purposes. The corporation emphasized its focus on funding research, development, and distribution of AI-related technology without any private gain motive. OpenAI reiterated this commitment on its website, highlighting the importance of remaining unencumbered by profit incentives in pursuing its mission of developing safe and beneficial AI.

However, OpenAI’s recent decision to transition to a for-profit model while retaining the benefits accrued as a non-profit raises ethical concerns. It is essential to prevent the reappropriation of assets built under the guise of charity for potential private gains. Moreover, scrutiny of OpenAI’s past practices is necessary to ensure compliance with non-profit obligations and prevent inappropriate depletion of assets through transactions with third-party entities.

The Implications of OpenAI’s Restructuring

OpenAI’s proposed conversion could have far-reaching implications, particularly in Silicon Valley. Allowing this restructuring would incentivize startups to exploit non-profit status for tax-free funding, only to switch to for-profit status once commercially viable. This could distort the market and compel other organizations to adopt similar strategies to remain competitive.

Elon Musk and Shivon Zilis are actively involved in representing public interests in addressing these concerns. Their insights into OpenAI’s founding principles and operational practices make them well-suited to advocate for California’s interests in this matter.

Meta’s Commitment to Transparency in AI

Meta Platforms is dedicated to openness and transparency in the field of AI. Upholding OpenAI’s charitable promise to develop safe and beneficial AI free from commercial pressures is crucial. The rapid pace of OpenAI’s for-profit conversion underscores the urgency for action to preserve the integrity of its initial mission.

Your consideration of these concerns is greatly appreciated, and we are available to address any further inquiries you may have.

Respectfully,

Meta Platforms

FAQs

Q: Why is OpenAI’s transition from non-profit to for-profit concerning?

A: OpenAI’s shift raises questions about accountability, potential misuse of assets, and the impact on the tech industry as a whole.

Q: How can the public interest be safeguarded in this matter?

A: Elon Musk and Shivon Zilis are actively involved in representing public interests, advocating for transparency and adherence to OpenAI’s initial mission.

Credit: www.theverge.com