To fend off future hostile takeover attempts, OpenAI is considering giving its non-profit board special voting rights, according to a new report in the Financial Times. The rights would allow the board to overrule major investors in the company, preserving some of its powers after OpenAI completes its transition to a for-profit. OpenAI was founded […] © 2024 TechCrunch. All rights reserved. For personal use only.
OpenAI is exploring the option of granting its nonprofit board special voting rights to deter hostile takeovers, allowing the board to override major investors, especially post-transition to a for-profit model. Initially a nonprofit, OpenAI became a capped-profit entity in 2019. Recently, an investor group led by Elon Musk offered $97.4 billion to acquire the nonprofit, which was rejected by the board. This decision may complicate OpenAI's plans to spin out the nonprofit, enabling the for-profit arm to manage operations, with the transition expected to be completed by late 2026.
