According to PANews, OpenAI and Microsoft are engaged in intense negotiations over a potential $14 billion investment. The discussions focus on how to convert Microsoft's investment in the non-profit organization into equity in a future for-profit company. OpenAI recently completed a funding round, valuing the company at $157 billion, and plans to transition from a non-profit to a for-profit entity, making equity distribution a significant challenge.
As OpenAI's largest investor, Microsoft has invested a total of $13.75 billion since 2019 and could secure substantial equity in the new company. Both parties have hired financial advisors, Morgan Stanley and Goldman Sachs, to determine Microsoft's stake and governance rights in the restructured OpenAI. This decision is crucial for the development of the AI industry and the future collaboration between the two entities.
