OpenAI Considers Special Voting Rights for Board to Prevent Hostile Takeover Attempts


Company evaluates protective measures amid Elon Musk's hostile bid / AFP

OpenAI, the company behind the AI model ChatGPT, is exploring the option of granting special voting rights to its board members in a bid to prevent hostile takeovers. This potential move would ensure that the non-profit organization's leadership retains control over key decisions, regardless of the influence of major investors like Microsoft or SoftBank.

The proposal comes in response to recent attempts by Elon Musk and his consortium to acquire OpenAI. According to reports from the Financial Times, the company’s leadership, including CEO Sam Altman and the board, are discussing a potential restructuring of the organization’s governance to safeguard its independence. This includes granting special voting powers to board members, which could override decisions made by prominent investors. If implemented, this change would allow OpenAI to retain its decision-making authority even in the face of external pressures, such as those from large investors or potential acquirers.

Elon Musk's bid to take control of OpenAI was officially rejected by the board last week. The offer, which valued OpenAI at $97 billion, was made by a consortium of investors led by Musk. OpenAI firmly rejected the proposal, stating that the company was not for sale and that any future acquisition attempts would be considered hypocritical and dishonest.

Musk’s efforts to take control of OpenAI are largely driven by his concerns over the company's potential shift towards a for-profit model. He has sought to block OpenAI’s transition to a for-profit entity, which he believes could compromise the company’s mission and its role as a leader in artificial intelligence development. The rejection of the hostile takeover bid marks a significant moment in the ongoing tension between Musk and OpenAI's leadership.

The board’s consideration of granting special voting rights is a defensive measure aimed at ensuring the organization’s long-term vision and leadership remain intact. This move highlights the increasing importance of governance structures in tech companies, particularly as the stakes in the rapidly growing AI sector continue to rise. By securing the board's autonomy through special voting rights, OpenAI aims to protect its core values while navigating the complex landscape of investor influence and external acquisition attempts.

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