OpenAI's transformation triggers $14 billion equity negotiations, with Microsoft competing for future shareholding

PANews reported on October 18 that according to , OP and Microsoft are in tense negotiations over a potential $14 billion investment, and the two parties need to decide how to convert Microsoft's investment in the non-profit organization into equity in a future for-profit company. OP recently completed a funding round, with a valuation of $157 billion, and plans to transition from a non-profit organization to a for-profit company, with the issue of equity distribution being a major challenge in this process. As OP's largest investor, Microsoft has cumulatively invested $13.75 billion since 2019 and may therefore acquire a significant equity stake in the new company. The two parties have respectively hired Morgan Stanley and Goldman Sachs as financial advisors to determine Microsoft's shareholding ratio and governance rights in the restructured OP, which is crucial for the development of the AI industry and the future cooperation between the two parties.