Meta Platforms recently submitted a letter to California Attorney General Rob Bonta, urging him to prevent OpenAI's plan to transition from a non-profit organization to a for-profit company. According to The Wall Street Journal, the letter was sent by Meta on Thursday, stating that allowing OpenAI to make this conversion would set a concerning precedent, potentially enabling startups to enjoy non-profit status while ultimately shifting to a for-profit model. Meta emphasized in the letter.

Recently, there have been reports that OpenAI is undergoing a significant business transformation and may transition into a for-profit company. According to Reuters, OpenAI is in talks with investors for a large-scale financing round, with a valuation potentially exceeding $150 billion. This transition is closely related to the company's governance structure, especially after CEO Sam Altman took the helm and mentioned the need to "improve our governance structure." The new business model will enable OpenAI to operate under a "capped profit" model.

OpenAI's CEO Sam Altman recently disclosed to shareholders that the company is exploring a change in its governance structure, planning to transform OpenAI from a nonprofit organization into a for-profit public benefit corporation. This change could detach OpenAI from the control of its existing nonprofit board, paving the way for its initial public offering (IPO).