Microsoft and OpenAI Negotiate Equity Stake Amid Restructuring

OpenAI's transition to a for-profit entity prompts discussions on Microsoft's investment and governance rights.

OpenAI's conversion to a for-profit public benefit corporation has led to complex negotiations over Microsoft's equity stake.
Microsoft has invested nearly $14 billion in OpenAI, and both companies have hired investment banks to assist in determining the new equity structure.
OpenAI's valuation has soared to $157 billion, despite projecting a $5 billion loss this year on $3.7 billion in revenue.
CEO Sam Altman and other executives are expected to receive equity in the newly structured company, addressing previous concerns about leadership stakes.
Microsoft is also negotiating for greater governance rights following past tensions, including Altman's temporary ousting in 2023.