04:08 PM EDT, 10/18/2024 (MT Newswires) -- (Updates with Microsoft's ( MSFT ) response in the fifth paragraph.)

Microsoft ( MSFT ) and OpenAI are negotiating over how to convert Microsoft's ( MSFT ) nearly $14 billion investment in OpenAI to equity as it shifts from a nonprofit to a for-profit company, The Wall Street Journal reported Friday, citing sources familiar with the matter.

Both companies have hired investment banks to guide the process with Microsoft ( MSFT ) tapping Morgan Stanley ( MS ) , while OpenAI working with Goldman Sachs ( GS ) , the news outlet reported.

Alongside Goldman Sachs ( GS ), OpenAI is reportedly also being advised by Michael Klein, a former Citigroup (C) banker who is close to OpenAI CEO Sam Altman.

Investors in OpenAI's recent funding round, such as Nvidia ( NVDA ) and firms like Thrive Capital and SoftBank, will also reportedly receive equity when OpenAI becomes a for-profit company.

Microsoft ( MSFT ) declined to comment on the matter.

OpenAI, Morgan Stanley ( MS ) and Goldman Sachs ( GS ) did not immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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