PANews reported on December 14 that Meta is asking the California Attorney General to block OpenAI's plan to transform into a for-profit company, marking its stance on Musk's side in the battle between the two major Silicon Valley AI giants. In a letter sent to California Attorney General Rob Bonta on Thursday, Meta said that allowing OpenAI to transform into a for-profit company would set a dangerous precedent for startups, allowing them to continue to enjoy tax benefits of non-profit organizations before they are ready to make a profit.

“OpenAI’s move could have far-reaching implications for Silicon Valley,” Meta wrote in the letter. “If OpenAI’s new business model is accepted, nonprofit investors will have the same profit opportunities as investing in traditional for-profit companies, while also being able to enjoy tax breaks provided by the government.”