OpenAI is restructuring to secure more investor funding while maintaining control. Currently led by a non-profit organization, the startup faces concerns from investors who view this structure as a potential source of uncertainty. To address these concerns, OpenAI is shifting toward a more conventional corporate model while ensuring safeguards against hostile takeovers.
According to Reuters, citing the Financial Times, the new structure will emphasize commercial activities and investor accountability. The OpenAI board of directors is expected to retain veto power, which it can use to counter potential takeover threats.
Protection Against Hostile Takeovers
This move follows Elon Musk’s recent attempt to acquire OpenAI for $97.4 billion—a proposal the board ultimately rejected. If OpenAI transitions fully to a commercial structure, standard board rules might not include such protective mechanisms. The proposed special powers for the board would help shield the company from pressure by major shareholders, such as Microsoft and SoftBank.
The protection strategy is reportedly being developed in collaboration with CEO Sam Altman, one of OpenAI’s co-founders, adds NIXsolutions. Unlike Altman, Musk parted ways with OpenAI years ago and has since criticized the company’s direction. He justified his acquisition attempt as an effort to “save” OpenAI, though his own commercial interests in AI, particularly through his startup xAI, are undeniable.
As OpenAI continues adapting its structure, the board’s approach to balancing investor interests with long-term stability remains a key focus. We’ll keep you updated as more details emerge.