How much stake will Microsoft have in OpenAI if it becomes a commercial company? This is a multi-billion dollar problem. It’s a question both political parties are racing to find an answer to as the two-year deadline approaches.
The Wall Street Journal reported that both Microsoft and OpenAI have hired investment banks to negotiate a stake in Microsoft. This can be significant. The tech giant has reportedly invested nearly $14 billion in OpenAI. As of October, OpenAI was the second most valuable startup in the U.S., behind SpaceX.
Among other things, Microsoft and OpenAI will need to decide how much equity will be allocated to CEO Sam Altman and OpenAI employees, and what specific governance rights Microsoft will have. If OpenAI converts to a for-profit company, it will become a public benefit corporation, but the non-profit component will own a stake in the reorganized company.
The negotiations reportedly come as OpenAI boss Greg Brockman plans to return from an extended leave as early as November.
