Microsoft Stock Rises on OpenAI Restructuring Deal
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BTCCSquare news:
Microsoft shares gained nearly 2% in after-hours trading following the announcement of a revised partnership with OpenAI. The non-binding agreement allows OpenAI to transition to a for-profit structure, unlocking new investment opportunities and potentially paving the way for a future listing. OpenAI is reportedly targeting a $500 billion valuation, with its nonprofit parent holding equity exceeding $100 billion.
Microsoft's $11 billion investment in OpenAI since 2019 has granted it exclusive Azure distribution rights and preferred technology access. However, the restructured deal may dilute these privileges as OpenAI expands its cloud partnerships with Oracle and Google to meet growing demand.
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