Meta Attempts to Block OpenAI’s For-Profit Shift, Intensifying AI Rivalry

Meta Platforms and CEO Mark Zuckerberg have been thoroughly ahead with their AI ambitions, rolling out their Llama LLM and the recent roll-out of their Meta/Ray Ban Smart Glasses with AI capabilities. But Zuck doesn't appear eager to share the somewhat crowded stage of this growing sector.

In a letter dated December 12, 2024, Meta formally requested that California Attorney General Rob Bonta block OpenAI's proposed transition from a non-profit to a for-profit entity. Why? Their beef stems from the fact that allowing such a change would set a "dangerous precedent" in Silicon Valley, enabling startups to leverage non-profit advantages until they become profitable, thereby undermining the integrity of the non-profit sector altogether.

We get it, but it's also ironic for several reasons, the most glaring being that Meta (once Facebook, as many know) is now a corporate giant with a market cap of almost $2 trillion. Meta, which once evolved from a small, idealistic social platform to connect people around the world, now criticizes OpenAI for wanting to do something similar.

OpenAI is a bit shady here, suddenly flipping from non-profit to gain tax benefits and public trust, only to convert to for-profit models once financially viable, but isn't that part of the game? Just this weekend, we saw Zuckerberg give $1 million to President-elect Trump's inauguration after banning him from Meta a few years ago, so what changed? Likely, Zuck saw an opportunity to do what he usually does: strong-arm companies like Snapchat with resources, market dominance, and product development speed to develop the same product (IG stories, Reels, etc.) in a copycat culture. This, presently, feels close to the same tact.

What makes matters a bit worse for Sam Altman, CEO of OpenAI, and their efforts is that Elon Musk, the wealthiest man in the world, also has it out for them, which could mean even more trouble for OpenAI.