OpenAI is trying to make itself Elon Musk proof

Published On Feb 22, 2025, 10:30 AM

OpenAI is taking steps to protect itself from potential hostile takeovers, particularly in light of Elon Musk's recent unsolicited bid to acquire the company. CEO Sam Altman and the board are considering providing special voting rights to existing nonprofit board members, which would help maintain control over OpenAI even as it transitions into a for-profit model. This would enable the board to potentially override decisions made by major investors like Microsoft and SoftBank. The decision comes amid ongoing legal disputes with Musk, who contends that OpenAI should remain a nonprofit organization due to his initial funding agreement.

Stock Forecasts

MSFT

Negative

Investors should be cautious about the implications of OpenAI's strategic shifts and potential disputes with Musk, as these could lead to volatility in related stocks or investments. The importance of maintaining control and governance may invite more scrutiny or cause uncertainties in investment perceptions regarding profitability and future growth of OpenAI.

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