Microsoft’s Answer to OpenAI Inquiry: It Doesn’t Own a Stake

With global regulators examining Microsoft Corp.’s $13 billion investment in OpenAI, the software giant has a simple argument it hopes will resonate with antitrust officials: It doesn’t own a traditional stake in the buzzy startup so can’t be said to control it.

When Microsoft negotiated an additional $10 billion investment in OpenAI in January, it opted for an unusual arrangement, people familiar with the matter said at the time. Rather than buy a chunk of the cutting-edge artificial intelligence lab, it cut a deal to receive almost half of OpenAI’s financial returns until the investment is repaid up to a pre-determined cap, ...