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OpenAI weighs governance changes to block takeover

Feb, 18, 2025 Hi-network.com

OpenAI is considering granting special voting rights to its non-profit board as part of new governance measures aimed at protecting the power of its directors amid a potential takeover bid from Elon Musk. The company's CEO Sam Altman and board members are reportedly evaluating the move as OpenAI transitions to a for-profit structure. This would allow the non-profit board to retain control over key decisions, potentially blocking hostile takeovers, including Musk's recent$97.4 billion acquisition offer.

The proposal comes after Musk's consortium attempted to acquire OpenAI, with the company rejecting the offer, stating that it is not for sale and dismissing future bids. Musk's bid appears to be driven by concerns over OpenAI's shift toward profitability, as the company seeks to secure more funding to remain competitive in the AI sector. The special voting rights would give the non-profit board the ability to overrule major investors such as Microsoft and SoftBank, ensuring that OpenAI's leadership retains influence over key decisions.

This move reflects OpenAI's efforts to maintain control over its future direction while fending off external pressures from investors and potential acquirers. No final decision has been made yet, but the proposal is seen as a key strategy to safeguard the company's independence as it navigates the evolving AI landscape.

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