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OpenAI weighs special voting rights to guard against hostile takeovers, FT reportsン
OpenAI weighs special voting rights to guard against hostile takeovers, FT reports
(Reuters) -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.
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 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.
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.
(Reporting by Surbhi Misra in Bengaluru; Editing by Mrigank Dhaniwala)
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