Re:Microsoft is a minority owner of OpenAI Global LLC
by marcus0x62 on Saturday November 18, 2023 @11:40AM
(#38321367)
> The above is just scratching the surface of the absurdity that is the OpenAI corporate structure. Microsoft despite having 49% ownership of the for-profit subsidiary gets 75% of their profit..........until their initial investment is recouped.
I'm not sure why you think this part is absurd. This is basically a preferred return, and is very common in private equity and real estate investment.
I'm not sure why you think this part is absurd. This is basically a preferred return, and is very common in private equity and real estate investment.