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It's funded by companies and organizations supporting it as a permissively licensed open source project. It doesn't have any business model and won't have one. The work will only be done under the condition that it has been funded and past work needs funding to bring it back.
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GrapheneOS already uses MIT licensing for the new components and the existing licenses (mostly Apache 2) for modifications to existing components. Kernel changes will be GPL2 but could be permissively licensed if any is standalone and ends up being worth using outside the kernel.
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The work on the Auditor app has not yet been funded, so it doesn't have licensing for the sources available yet. It will be MIT licensed once the funding for it finally comes through, which is the last piece of the puzzle for the repositories in the GrapheneOS organization.
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Once someone has paid for it, it doesn't really matter anymore. The maintenance and porting of the code has to be funded too. There's a lot of interest in advancing the project so as long as it's clear that it must be funded companies / organizations are willing to do that.
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It's up to the companies and organizations using it and funding the work to come up with their own business models or approaches to getting grants / donations. Figuring out how to get funding isn't my problem but rather the problem of people who want to make use of the project.
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