OpenAI is considering granting special voting rights to its nonprofit board to protect itself from potential hostile takeover attempts. As reported by the Financial Times, these rights would allow the board to override the company’s major investors, retaining some of its powers after OpenAI’s transition to a capped-profit structure. The company was founded as a nonprofit, but in 2019 switched to a “capped-profit” model and is now restructuring again as a public benefit corporation.
Recently, a group of investors led by Elon Musk offered to buy out OpenAI’s nonprofit arm for $97.4 billion. The OpenAI board of directors unanimously rejected this proposal.
OpenAI intends to spin off its nonprofit arm, which will hire its own staff and management team, allowing the company’s commercial side to control business and operations. OpenAI has promised its investors to complete the transition to a public benefit corporation by the end of 2026. This decision is meant to ensure the company’s stability and preserve its core values, while allowing continued development in the field of generative AI. OpenAI representatives emphasize that these changes are part of a growth strategy and adaptation to market conditions.
