Sam Altman's OpenAI Reportedly Considers Special Voting Rights To Thwart Elon Musk's Acquisition Attempt And Defend Future Unsolicited Bids

Author: Namrata Sen | February 18, 2025 09:39am

In a move to protect its autonomy, Sam Altman-led AI firm, OpenAI, is contemplating granting special voting rights to its non-profit board. This comes in response to a takeover bid from Elon Musk.

What Happened: CEO Altman and the board members are considering new governance policies as the company shifts to a traditional for-profit model, according to a Financial Times report on Tuesday.

Musk’s bid is part of his continued efforts to keep OpenAI from shifting toward a profit-driven model as the company seeks additional funding to remain competitive in the AI industry. The proposed special voting rights would enable the non-profit board to overrule decisions by major investors, such as Microsoft (NASDAQ:MSFT) and SoftBank (OTC:SFTBY), ensuring OpenAI retains the decision-making authority.

OpenAI did not immediately respond to Benzinga’s request for comment.

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Why It Matters: This development comes on the heels of OpenAI’s rejection of a $97.4 billion acquisition proposal from Musk and his consortium of investors. On Friday, the board of OpenAI communicated to Musk’s lawyer in a letter that the offer was not in the best interests of OpenAI’s mission. OpenAI’s chairman, Bret Taylor, emphasized that the company is not for sale and the board unanimously turned down Musk’s offer.

Previously, in an interview with CNBC, Altman stated that Musk's bid could be a tactical move to obstruct a competitor and strengthen his own AI company, xAI.

Meanwhile, in a research note on Feb. 11, analysts at Oppenheimer said that Elon Musk‘s recent attempt to acquire ChatGPT’s parent company, OpenAI, serves as a diversion from his electric vehicle company, Tesla (NASDAQ:TSLA).

While the decision is yet to be finalized, the proposed special voting rights could serve as a protective measure for OpenAI to strengthen its defense against future unsolicited takeover bids.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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