
PANews reported on October 18 that according to the Wall Street Journal, OpenAI and Microsoft are in intense negotiations for an investment of up to $14 billion. The two sides need to decide how to convert Microsoft's investment in non-profit organizations into equity in future profitable companies. OpenAI recently completed a round of financing with a valuation of $157 billion and plans to transform from a non-profit organization to a for-profit company. The equity distribution issue in this process has become a major challenge.
As the largest investor in OpenAI, Microsoft has invested a total of $13.75 billion since 2019 and may acquire a large stake in the new company. Both parties have hired Morgan Stanley and Goldman Sachs as financial advisors to determine Microsoft's shareholding ratio and governance rights in the reorganized OpenAI, which is crucial to the development of the AI industry and future cooperation between the two parties.
