**Microsoft and OpenAI Negotiating Substantial Equity Stake**

As Microsoft and OpenAI approach a crucial two-year deadline, both are collaborating intensely to determine the extent of Microsoft's equity in a restructured, for-profit OpenAI. This significant stake could be the result of nearly $14 billion in investments from Microsoft.

Reports from The Wall Street Journal indicate that both tech entities have enlisted the help of investment banks to fine-tune Microsoft's equity share, which might be quite substantial given their sizable financial contributions. OpenAI is currently recognized as the second-most valuable startup in the United States, trailing only SpaceX.

Key issues on the negotiation table include the amount of equity to be allocated to OpenAI’s CEO Sam Altman and its employees, in addition to defining the specific governance rights that will be granted to Microsoft. Upon OpenAI’s transition to a for-profit entity, it will transform into a public-benefit corporation while maintaining a nonprofit component that retains some equity in the revamped company.

Adding another layer to the ongoing negotiations, OpenAI’s president, Greg Brockman, is reportedly planning a return from an extended leave by November, potentially influencing the strategic direction as discussions progress.