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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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There's a huge amount of work in development that will need to be funded in order to be released as part of the project, along with lots of past work that needs to be funded in order to release it under permissive licensing. The model is that all development must be compensated.
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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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And to be clear, my current work on the project is being funded. To make the project sustainable, the supporters of the project will also need to fund the work of more full-time developers. It can substantially expand in scope and depth with enough resources being provided.
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Some of these companies / organizations are quite interesting in having custom hardware made where there's a lot more control over it and privacy/security can be furthered at the hardware level. That's a long way off and it's very difficult just to *match* Pixel security though.