Microsoft could acquire a significant stake in the restructured for-profit OpenAI.
It is reported that Microsoft and OpenAI are in discussions about the equity stake Microsoft will acquire in OpenAI when the latter turns into a for-profit company.
Microsoft is in a race to determine the amount of equity stake it will receive from OpenAI once the latter becomes a for-profit company. This deal, which could involve billions of dollars, is crucial to define within a two-year timeframe. It has been reported that both companies have hired investment banks to facilitate negotiations regarding Microsoft's stake, which could be substantial given that the tech company has invested nearly $14 billion in OpenAI.
In October, OpenAI was considered the second most valuable startup in the United States, surpassed only by SpaceX. During these negotiations, topics such as the stake that CEO Sam Altman and OpenAI employees will receive, as well as the specific governance rights that Microsoft will have, must also be addressed. As it transitions to a for-profit entity, OpenAI will adopt the form of a public benefit corporation, although a non-profit component will remain that will hold a stake in the restructured company.
These discussions coincide with the anticipated return of OpenAI President Greg Brockman, who may return from an extended leave in November.
