OpenAI Considers Governance Shift as Sam Altman Resists Elon Musk’s $97B Takeover

Key Takeaways

• On Feb. 10, a group of investors led by Elon Musk offered to buy OpenAI’s nonprofit arm for $97 billion.
• OpenAI and its CEO Sam Altman rejected the offer.
• Now, the ChatGPT developer is considering governance reforms to prevent further hostile takeover attempts.

Following Elon Musk’s attempt to buy the nonprofit that controls OpenAI, the company rejected Musk’s offer on Friday, Feb. 14, insisting that the ChatGPT developer isn’t for sale.

Now, in an attempt to stave off further takeover attempts, OpenAI’s board is said to be considering governance reforms that would grant its directors special voting rights.

OpenAI Rejects Musk’s $97B Takeover Bid

The initial move to buy OpenAI Inc. occurred on Monday, Feb. 10, when a consortium of investors led by Musk submitted a $97.4 billion offer for the nonprofit’s assets.

Musk’s lawyers claimed the aggressive takeover bid was aimed at realigning OpenAI with its original open-source and safety-centric mission, which Musk believes has shifted toward profit-driven motives. 

However, OpenAI’s board unanimously rejected the proposal, emphasizing their commitment to independence. Meanwhile, in a message to employees, CEO Sam Altman dismissed Musk’s “tactics” as an attempt to weaken OpenAI, “because we are making great progress.” 

Proposed Governance Reforms

In response to Musk’s takeover attempt, OpenAI is reportedly evaluating governance changes to fortify its autonomy. 

One measure under consideration is the implementation of special voting rights for its nonprofit board. While the company has not revealed details of the proposed changes, such structural adjustments could empower the board to override decisions by major investors, the Financial Times reported .

Elon Musk’s Motives

Although Musk claimed his bid was genuine, many observers believe he had an ulterior motive.

By raising the perceived value of OpenAI’s nonprofit arm, the bid could increase the startup’s financial obligations as Altman and the board attempt to convert it to a for-profit enterprise. 

Although he co-founded OpenAI with Altman in 2015, Musk has vehemently opposed its transition, which is subject to ongoing litigation brought by Musk and his rival AI company xAI. 

On Monday, Feb. 17, xAI released its latest Chatbot Grok 3—an alternative to ChatGPT  that Musk claims is superior but which lags well behind in adoption.