OpenAI and Microsoft are in a high-risk negotiation on an unprecedented question: how should the nearly $14 billion investment in a non-profit organization be converted into equity in a for-profit company? OpenAI recently completed a round of financing, valued at $157 billion, and is transforming from a non-profit organization to a for-profit company. When it becomes a for-profit company, how to distribute equity is one of the biggest challenges it faces. As OpenAI's biggest investor, Microsoft is likely to own a large share of the company's shares. Given the importance of the negotiation results to Microsoft and OpenAI, both companies have hired investors to provide consulting services for them. Microsoft collaborated with Morgan Stanley, while OpenAI chose Goldman Sachs. In addition to determining how many shares Microsoft holds after the restructuring, it is also necessary to clarify what kind of governance rights Microsoft will have.

OpenAI and Microsoft are in a high-risk negotiation on an unprecedented question: how should the nearly $14 billion investment in a non-profit organization be converted into equity in a for-profit company? OpenAI recently completed a round of financing, valued at $157 billion, and is transforming from a non-profit organization to a for-profit company. When it becomes a for-profit company, how to distribute equity is one of the biggest challenges it faces. As OpenAI's biggest investor, Microsoft is likely to own a large share of the company's shares. Given the importance of the negotiation results to Microsoft and OpenAI, both companies have hired investors to provide consulting services for them. Microsoft collaborated with Morgan Stanley, while OpenAI chose Goldman Sachs. In addition to determining how many shares Microsoft holds after the restructuring, it is also necessary to clarify what kind of governance rights Microsoft will have.