Microsoft and OpenAI Partnership Revision Could Impact MSFT Stock
OpenAI is in advanced negotiations with Microsoft to potentially overhaul their existing partnership. Recent reports indicate OpenAI may slash the revenue share it provides to Microsoft by at least 50% by 2030. This development poses a significant risk to Microsoft’s stock, given the partnership’s substantial contribution to revenue.
Microsoft’s $13.75 billion investment in OpenAI since 2019, including a $10 billion injection in early 2023, has been a cornerstone of its AI strategy. The collaboration has buoyed investor confidence, with MSFT shares up 4% this week despite the uncertainty. The tech giant’s AI ambitions now face a critical test as terms are renegotiated.