\nMeta sends letter to US government urging block of OpenAI switching to for-profit
\nOpenAI began its developments with donations from important figures, including Musk himself. Recently, the owner of X said that Sam Altman, OpenAI CEO, lied to him. Musk claims that he donated to the company with the idea that it would remain a non-profit organization. He has even attempted to file lawsuits against ChatGPT\u2019s parent company. On the other hand, OpenAI claims that Musk had agreed with the change in financial model.
\nThis week, Meta joined Musk\u2019s cause by sending a letter to Bonta\u2019s office. The document includes a mention of Musk, saying he is someone \u201cqualified and well positioned to represent the interests of Californians in this matter.\u201d
\nAccording to Meta, the US government should act on OpenAI\u2019s financial model change. The letter says that OpenAI \u201cshould not be allowed to flout the law by taking and reappropriating assets it built as a charity and using them for potentially enormous private gains.\u201d
\nThe movement could lead to the birth of \u201cfalse\u201d non-profit organizations to get funds
\nThe main argument of Mark Zuckerberg\u2019s company is in the potentially \u201cseismic implications for Silicon Valley.\u201d Meta believes that, if OpenAI is successful, a wave of new companies will emerge trying to repeat the same movement. In other words, these companies could collect donations as non-profit entities, with the intention of transitioning into for-profit entities soon.
\nThe movement could lead to \u201cinvestors to launch organizations as non-profits, collect hundreds of millions of dollars in tax-free donations to support research and development, and then assume for-profit status as its technology becomes commercially viable,\u201d the letter states.
\nOpenAI defends the financial model switch as necessary
\nBret Taylor, OpenAI board chair, responded to the letter defending the model change. \u201cWhile our work remains ongoing as we continue to consult independent financial and legal advisors, any potential restructuring would ensure the nonprofit continues to exist and thrive, and receives full value for its current stake in the OpenAI for-profit with an enhanced ability to pursue its mission.\u201d Becoming a for-profit company will ensure that the company \u201cis well-positioned to continue advancing its mission of ensuring AGI benefits all of humanity,\u201d Taylor says.
\nOpenAI began raising funds this year by promising that it will successfully change its financial model within two years. In fact, if the firm doesn\u2019t manage to do so, it will have to pay it back, with interest. We\u2019re talking about billions of dollars in funding.
\nMeta launched its Llama 3.3 70B AI model this month
\nOn the other hand, Meta has its own interests in this matter. The company is among the main names in the artificial intelligence segment. Meta AI is present on multiple of its social and messaging platforms. This month, Meta announced Llama 3.3 70B as its most advanced AI model to date.
\nThe post Meta urges authorities to prevent OpenAI from becoming for-profit appeared first on Android Headlines.
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\nSource: ndroidheadlines.com <\/p>\n","protected":false},"excerpt":{"rendered":"