Rivals Meta and xAI are Teaming Up Against OpenAI’s For-Profit Plans

Mark Zuckerberg’s Meta and Elon Musk's xAI have joined forces in an unlikely alliance, calling for authorities to prevent OpenAI from pursuing for-profit status. Both tech giants argue that OpenAI is misleading the public by operating under the guise of a non-profit (its name reflecting its initial intent to function as an open AI platform), while potentially reaping enormous private gains.

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On Friday, The Wall Street Journal reported that Meta had formally expressed its concerns to California Attorney General Rob Bonta, urging an investigation into OpenAI's transition from a non-profit to a for-profit entity. In this letter, Meta warned that failing to hold OpenAI accountable could set a dangerous precedent for other startups to exploit non-profit status for financial advantage. 

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The letter also showed support for the efforts of Musk and Shivon Zillis (Musk’s business associate), saying, “Although we would also urge your office to take direct action, we believe that Mr. Musk and Ms. Zilis are qualified and well-positioned to represent the interests of Californians in this matter.”

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Prior to Meta sending this letter, Musk filed an injunction against OpenAI with a federal court, requesting that OpenAI be blocked from becoming a fully for-profit business. 

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However, on Friday, OpenAI defended its position in a blog, claiming that Musk, a former co-chair, had not only advocated for a for-profit model but even “demanded majority equity, absolute control, and to be CEO of the for-profit” before parting with OpenAI in March 2019 when his demands were not met. In OpenAI’s words, “When he didn’t get majority equity and full control, he walked away and told us we would fail. Now that OpenAI is the leading AI research lab and Elon runs a competing AI company, he’s asking the court to stop us from effectively pursuing our mission.” 

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The teaming up of Musk and Zuckerburg, who once agreed to fight each other in a cage match (perhaps not in total sincerity) demonstrates how a common enemy can make alliances even from rivals. As the old saying goes, "The enemy of my enemy is a friend."

‍There’s no need to pick a side: Narus’s secure GenAI portal can integrate with multiple AI models, including OpenAI and Meta AI.