Greetings,

The power dynamics in the latest AI startup raising big money are raising eyebrows. Stephanie Palazzolo and Natasha Mascarenhas report on the extraordinary control being granted to Thinking Machines Lab's founder and CEO, Mira Murati, a former OpenAI CTO.

The article highlights that Murati is slated to receive a board vote with the weight of all other directors' votes plus one. This effectively gives her the final say on major decisions, regardless of opposition from other board members.

Here's what stood out:

• Unprecedented Control: Murati's board voting power is highly unusual, even in the startup world where founder control is common.
• Supervoting Shares for Founders: Beyond board control, the founding team also possesses shares with 100 times the voting rights of other shares, with Murati holding their proxy.
• Potential Implications: This structure could protect against hostile takeovers but also raises questions about board oversight and governance.

This article delves into the implications of such concentrated power in a rapidly evolving and high-stakes field like AI. It's a crucial read for anyone interested in startup dynamics and corporate governance in the age of AI.

Best,

Jessica Lessin
Founder & Editor-in-Chief

Thinking Machines Lab CEO Has Unusual Control in Andreessen-Led Deal

It's common nowadays for founders of hot startups to hold special shares that give them more voting power than most investors. But Mira Murati, a former OpenAI chief technology officer who is now a founder and the CEO of artificial intelligence startup Thinking Machines Lab, may exert an unusual level of control even by those standards.

Murati has told potential investors the startup is close to raising $2 billion, at a $10 billion valuation, from investors led by Andreessen Horowitz. Included in the terms of that investment are provisions giving Murati a board vote that holds the same weight as all the other board directors' votes plus one, according to documents shared with potential investors.

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