American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

OpenAI may adopt special voting rights to block hostile takeovers – report

by admin February 18, 2025
February 18, 2025
OpenAI may adopt special voting rights to block hostile takeovers – report

OpenAI is exploring new governance measures to shield itself from potential hostile takeovers, as concerns rise over the influence of major investors and external stakeholders, according to a Financial Times report.

The artificial intelligence giant, known for developing ChatGPT, is reportedly considering granting its non-profit board special voting rights—an unusual move for a company transitioning into a for-profit structure.

This development comes amid growing pressure from investors and competitors, with reports indicating that OpenAI recently turned down a $97.4 billion acquisition offer from a consortium led by Elon Musk.

While OpenAI remains a dominant force in the AI race, the company’s board is now focused on fortifying its independence in the face of mounting financial and strategic challenges.

OpenAI’s board control may limit investors

The proposed voting rights structure would allow OpenAI’s non-profit board to override major investor decisions, effectively placing key strategic choices beyond corporate influence.

This could set a precedent for other technology firms looking to balance financial backing with mission-driven objectives.

If implemented, the move could limit decision-making power for investors such as Microsoft and SoftBank, both of whom have played a crucial role in OpenAI’s expansion.

While OpenAI has yet to finalize its governance framework, insiders suggest these measures are being actively discussed to prevent external forces from steering the company in an undesirable direction.

The shift is particularly notable as OpenAI continues to secure funding to sustain its rapid growth. The AI sector remains fiercely competitive, with rivals like Anthropic and Google’s DeepMind pushing advancements in machine learning.

By cementing board control, OpenAI aims to ensure that its long-term vision is not dictated by short-term investor interests.

Elon Musk’s bid highlights AI divisions

The recent acquisition attempt led by Musk underscores a broader ideological rift within the AI sector.

While OpenAI has embraced a for-profit model to finance its ambitions, Musk has been vocal about his concerns that the company is straying from its original mission.

The billionaire, who co-founded OpenAI before departing, has repeatedly criticized the firm’s ties to corporate giants and its shift towards monetization.

Musk’s $97.4 billion bid was rejected outright, with OpenAI dismissing it as an attempt to derail its trajectory. The offer signals that major players in the tech industry are keenly aware of OpenAI’s strategic importance.

The AI boom has prompted a surge in corporate interest, and OpenAI’s position as a leading innovator makes it a highly attractive target.

Beyond Musk, other tech heavyweights are closely watching OpenAI’s governance evolution.

Investors who have poured billions into the company may see these proposed voting rights as a potential obstacle to their influence, raising questions about whether they will continue supporting OpenAI under such conditions.

Regulatory concerns over AI control

As OpenAI navigates its governance transition, the company may face increased scrutiny from regulators and policymakers.

The AI sector’s rapid expansion has drawn regulatory attention worldwide, with governments seeking to implement frameworks that ensure ethical AI development while preventing monopolistic practices.

If OpenAI grants its non-profit board exclusive decision-making power, it could spark debates over corporate accountability and investor rights.

Regulators may question whether such a structure aligns with fair governance standards, particularly as OpenAI continues to accept significant private funding.

Moreover, OpenAI’s strategic shift could prompt other AI firms to reconsider their governance models. Companies like Google DeepMind and Anthropic are also balancing investor expectations with long-term AI safety objectives.

How OpenAI resolves this governance challenge could influence how AI firms structure their leadership in the years ahead.

For now, OpenAI remains firm in its stance against external takeover attempts.

Whether the company’s new governance approach will secure its independence without alienating investors remains to be seen, but its decisions will have far-reaching consequences for the future of AI governance and corporate control.

The post OpenAI may adopt special voting rights to block hostile takeovers – report appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Curaleaf stock price forecast: is the CURLF crash over?
next post
Tilray stock price crashes below $1: buy the dip or sell the rip?

Related Posts

American Eagle profit soars, but sales grow slower...

May 31, 2024

TikTok and fast-food rivalry fuel Chili’s sales as...

August 18, 2024

UTF: Is Cohen & Steers Infrastructure fund a...

November 2, 2024

Indian markets open: Sensex tops 80K, Nifty above...

April 25, 2025

JPMorgan predicts surge in South African IPOs amid...

October 21, 2024

A list of Nvidia chips named after women...

March 14, 2025

Mullen stock price went parabolic: is MULN a...

May 20, 2025

Bank of America reveals ‘most overlooked’ Trump stock...

February 28, 2025

Tata Motors stock enters a correction after a...

September 11, 2024

Soho House at 30: Can the nearly £3,000-a-year...

October 19, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,022)
    • Investing (2,459)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved