To fend off future hostile takeover attempts, OpenAI is considering giving its non-profit board special voting rights, according to a new report in the Financial Times.
The rights would allow the board to overrule major investors in the company, preserving some of its powers after OpenAI completes its transition to a for-profit. OpenAI was founded as a nonprofit before converting to a “capped-profit” structure in 2019. The company is now in the process of restructuring once again, this time to a public benefit corporation.
Last week, a group of investors led by billionaire Elon Musk offered to buy OpenAI’s nonprofit for $97.4 billion. OpenAI’s board unanimously rejected the offer, but the move could still put a wrinkle in OpenAI’s plans.
OpenAI aims to spin out its nonprofit, which will hire its own staff and leadership team — freeing up the for-profit arm to run and control OpenAI’s business and operations. OpenAI has promised its investors that it’ll complete the conversion by late 2026.