OpenAI Weighs Special Voting Rights to Guard Against Hostile Takeovers: Report

If implemented, the special voting rights would allow the non-profit board to overrule major investors.

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By Reuters | Updated: 18 February 2025 14:12 IST
Highlights
  • Sam Altman and board members are evaluating new governance measures
  • The move could help OpenAI block future hostile takeover attempts
  • On Friday, OpenAI rejected a $97.4 billion acquisition bid led by Musk

If implemented, the special voting rights would ensure OpenAI retains the decision-making power

Photo Credit: Unsplash/ Levart_Photographer

OpenAI is considering granting special voting rights to its non-profit board to preserve the power of its directors, as the ChatGPT-maker fends off an unsolicited takeover bid from Elon Musk, Financial Times reported on Tuesday.

Chief Executive Officer Sam Altman and board members are evaluating new governance measures as the company transitions to a traditional for-profit structure, the report said, citing people with direct knowledge of the discussions.

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OpenAI did not immediately respond to a Reuters request for comment.

While no firm decisions have been made, the move could help OpenAI block future hostile takeover attempts, including from Musk, who co-founded the company with Altman but later departed.

On Friday, OpenAI rejected a $97.4 billion (roughly Rs. 8,46,877 crore) acquisition offer from a consortium led by Musk, saying the startup is not for sale and dismissing any future bids as disingenuous.

Musk's offer is his latest effort to prevent OpenAI from becoming a profit-driven company as it seeks more funding to stay competitive in the artificial intelligence race.

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If implemented, the special voting rights would allow the non-profit board to overrule major investors, including backers like Microsoft and SoftBank, ensuring it retains decision-making power, the report said.

© Thomson Reuters 2025

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

 

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Further reading: OpenAI, Sam Altman, Elon Musk
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