OpenAI Seeks Measures Against Musk's Acquisition Bid

Elon Musk recently attempted an unsolicited takeover of OpenAI, which was rejected by CEO Sam Altman and the nonprofit board. In response, OpenAI is reportedly considering changes that would grant its nonprofit directors enhanced voting rights, aiming to maintain authority as the organization transitions to a for-profit structure. This move is intended to counter Musk's claims that OpenAI has deviated from its original charitable mission and could allow board members to overrule other investors, such as Microsoft. OpenAI's board and Altman face a lawsuit from Musk challenging the shift to a profit-driven model. Nonprofit law expert Ellis Carter emphasized the importance of strategic governance to protect against hostile takeovers, while UCLA law professor Rose Chan Loui suggested that special voting shares for board members might be part of the restructuring plan. Meanwhile, Musk's recent offers and legal actions reflect a deeper rivalry with Altman, rooted in their history at OpenAI.