Overview

• 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.