OpenAI is exploring the idea of granting enhanced voting rights to its non-profit board to safeguard the authority of its directors amid an unsolicited takeover proposal from Elon Musk, according to a report by the Financial Times on Tuesday.
CEO Sam Altman and members of the board are reviewing potential governance changes as the organization shifts towards a conventional for-profit model, sources familiar with the matter have revealed.
OpenAI has yet to issue a comment in response to a request from Reuters.
Although no definitive actions have been taken, these measures could provide OpenAI with a way to thwart potential hostile takeover attempts, including the one from Musk. Musk was a co-founder of the organization alongside Altman but later exited the company.
Last Friday, OpenAI rejected Musk’s proposal of $97.4 billion (approximately Rs. 8,46,877 crore) from a group he led, firmly stating that the startup is not for sale and categorizing any future offers as insincere.
This latest bid by Musk aims to keep OpenAI from fully embracing a profit-oriented framework, as the company seeks additional funding to remain competitive in the rapidly evolving artificial intelligence sector.
If carried out, the proposed special voting rights would empower the non-profit board to override decisions made by significant investors, such as Microsoft and SoftBank, thereby maintaining its decision-making authority, the report noted.
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