OPENAI, MICROSOFT REPORTEDLY HIRE BANKS TO RENEGOTIATE PARTNERSHIP TERMS

Summary from the TLDR newsletter

OpenAI and Microsoft have both hired investment banks to help revise the terms of their partnership as OpenAI plans to restructure to reincorporate its for-profit arm as a benefit corporation and remove caps that previously limited investors' returns. The negotiations are said to focus on how big of a stake Microsoft will receive in OpenAI following the restructuring. Microsoft has invested over $13 billion into OpenAI since 2019. The current terms of the partnership say that Microsoft will receive most of OpenAI's initial profits until it recoups its investment. OpenAI doesn't expect to become profitable until 2029.