Meta demands to block OpenAI's transition from a non-profit to a for-profit company

Meta demands to block OpenAI's transition from a non-profit to a for-profit company

Kyiv  •  UNN

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Meta has asked the California Attorney General to block the change of OpenAI's status. The company believes that this will set a dangerous precedent for the abuse of tax benefits.

Meta has made an official request to California Attorney General Rob Bonta to block OpenAI from being a non-profit organization to a for-profit company. This was reported by Reuters, according to UNN.

Details

Meta believes that such a move could set a precedent that would allow startups to benefit from non-profit status until they become profitable.

The company also warns that the new OpenAI model could lead to abuses in the investment sector, including the use of tax incentives provided by the government to generate significant profits. 

However, there has been no official response from the California prosecutor's office yet.

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