Longo loophole to ChatGPT in JulySorry, I did not have a chance to get to this item until now.
My idea is that if MSFT owns 30% of OpenAI, then an option after OpenAI’s IPO, is to tax-free spinoff that 30% to MSFT shareholders. Comments?
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Very unlikely, is my guess. Don’t know whether Open AI will go public in the next few years or not, but Microsoft hasn’t ever spun out anything else, they tend to be an acquirer of strategic assets, not a “value maximizer”.
And if it does happen at some point in the relatively near future, it is not very likely to be a major financial event for Microsoft, just because they’re so large. Microsoft’s equity investment in OpenAI is about $10 billion, and that’s about how much Microsoft pays out in dividends in two quarters…. OpenAI would have to raise probably well over 10X in value for it to have a real impact on Microsoft’s balance sheet or income statement.
Though one never knows how the stock market will react to a story. The relationship with OpenAI has probably had far more than a $100 billion impact on Microsoft’s stock market value already, so some meaningful future gains are already “priced in” to MSFT shares, I would guess. Just my opinion.