OpenAI is exploring the establishment of special voting rights for its non-profit board to protect against hostile takeover bids as it transitions from a nonprofit to a public benefit corporation. This move follows a $97.4 billion takeover offer from a group led by Elon Musk, which the board unanimously rejected. The intention is to allow the non-profit to operate independently while the for-profit segment manages business operations. OpenAI targets the completion of this transition by late 2026.
To fend off future hostile takeover attempts, OpenAI is considering giving its non-profit board special voting rights.
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 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.
Last week, a group of investors led by billionaire Elon Musk offered to buy OpenAI's nonprofit for $97.4 billion.
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