OpenAI Explores Granting Board Special Voting Rights to Combat Unsolicited Takeover Bids
OpenAI is contemplating endowing its non-profit board with exclusive voting rights to maintain their authority amidst an unwelcome acquisition proposal from Elon Musk, as reported by Financial Times.
According to sources privy to the discussions, CEO Sam Altman and board members are weighing novel governance measures as the organization transitions to a conventional for-profit model. OpenAI has not yet responded to a request for comment from Reuters.
While firm decisions remain elusive, this strategy could fortify OpenAI against future attempts at hostile takeovers, particularly from Musk, who co-founded the company but subsequently parted ways.
On Friday, OpenAI declined a $97.4 billion acquisition offer from a consortium headed by Musk, stating that the startup is not up for sale and dismissing any future bids as insincere. Musk's offer represents his most recent endeavor to deter OpenAI from transforming into a profit-driven entity as it seeks additional funding to maintain its standing in the AI realm.
The report indicates that if implemented, the special voting privileges would empower the non-profit board to overrule major investors, including Microsoft and SoftBank, and preserve its decision-making authority.