OpenAI is exploring the idea of granting its nonprofit board special voting rights to prevent hostile takeover attempts, according to a report by the Financial Times. This move would enable the board to override major investors’ decisions, allowing it to maintain some control even after OpenAI completes its transition into a for-profit entity. Originally founded as a nonprofit, OpenAI shifted to a “capped-profit” model in 2019 and is now restructuring into a public benefit corporation.
Last week, a group of investors led by billionaire Elon Musk proposed acquiring OpenAI’s nonprofit arm for $97.4 billion. The board unanimously rejected the offer, but the proposal could still complicate OpenAI’s ongoing restructuring plans. The company is working to separate its nonprofit entity, which will have its own staff and leadership team, from the for-profit division that oversees its business and operations.
OpenAI has assured its investors that the transition to a public benefit corporation will be completed by late 2026. The introduction of special voting rights for the board could help OpenAI maintain its original mission and vision while preventing outside investors from gaining excessive influence over its operations.
This potential structural change reflects the growing tension between OpenAI’s nonprofit origins and its increasing commercial ambitions. As OpenAI continues to grow, balancing profit-driven goals with ethical considerations remains a challenge. By reinforcing the board’s authority, OpenAI aims to ensure that its long-term vision is not compromised by external financial pressures. However, it remains to be seen how investors will react to this move and whether it will influence OpenAI’s valuation and future funding opportunities.
