"Under the terms of the deal, Microsoft would be entitled to 75% of OpenAI’s profits until it earns back its initial investment, according to Semafor, which first reported the figure of the planned investment. After that threshold is reached, Microsoft would have a 49% stake in OpenAI with other investors taking another 49%, and OpenAI’s nonprofit parent getting 2%, the publication reported, without saying what stake Microsoft controls until that point."
Microsoft is considering an investment of up to $10 billion in OpenAI, the company behind ChatGPT. Microsoft previously invested $1 billion in 2019 and could use OpenAI technology to enhance its software products. The total amount may be cash only or may include the value of services Microsoft would provide. Separately, venture capitalists are pursuing a secondary market tender offer to buy shares from OpenAI employees and insiders, valuing the company at about $29 billion. Deal terms are not finalized. Under the proposed structure, Microsoft would receive 75% of profits until it recoups its initial investment, then hold 49% of OpenAI, with other investors holding 49% and the nonprofit parent holding 2%.
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