Microsoft(US:MSFT) Hua Er Jie Jian Wen·2025-06-19 02:15Group 1 - Microsoft is prepared to walk away from negotiations with OpenAI if key issues, such as equity distribution, are not resolved [1][2] - The ongoing discussions revolve around how much equity Microsoft should receive in return for its over $13 billion investment, with proposals ranging from 20% to 49% [2] - Current contract terms are highly favorable for Microsoft, allowing exclusive sales rights of OpenAI models and a 20% revenue share from a $92 billion revenue cap [2] Group 2 - OpenAI faces a critical deadline to secure Microsoft's approval for its transition to a profit-making entity by the end of the year, or risk losing significant investments [3] - Failure to convert to a profit-making model could lead to investors, including SoftBank, reclaiming part of their investments, potentially reducing SoftBank's $30 billion investment by $10 billion [3] - Microsoft has begun diversifying its AI offerings, indicating that OpenAI may no longer be the sole leader in AI models [3]