How much of a stake in OpenAI would Microsoft get if it became a commercial company? That's the multibillion-dollar question that both countries are racing to answer before a two-year deadline. This is a problem.
The Wall Street Journal reports that both Microsoft and OpenAI have hired investment banks to negotiate Microsoft's stake, which could be worth a significant amount. The tech giant is said to have poured nearly $14 billion into OpenAI. As of October, OpenAI was the second most valuable startup in the US after SpaceX.
Among other issues, Microsoft and OpenAI will need to resolve how much stock CEO Sam Altman and OpenAI employees will have and what specific governance powers Microsoft will have. . When OpenAI converts to a for-profit company, it will become a public benefit corporation, but it will also include a nonprofit portion that owns stock in the reorganized company.
The negotiations come amid reports that OpenAI president Greg Brockman is expected to return from a sabbatical as early as November.