Microsoft (MSFT) Doubles Down on OpenAI: Is This the Rocket Fuel for MSFT’s Next Rally?

Big Tech's AI arms race just got hotter—Microsoft inches closer to sealing a fresh OpenAI deal. Cue the speculative frenzy.

Why Wall Street cares: When MSFT sneezes, Nasdaq traders buy Kleenex. This move could lock in AI dominance—or become another 'metaverse' hype gravestone.

The cynical take: If the deal flops, rest assured—some hedge fund will still spin it as 'long-term strategic positioning' while dumping shares.

OpenAI and Microsoft to Reach a Compromise?

The two tech giants have been at odds over maintaining an existing deal for months. Earlier this summer, rumors emerged that Microsoft and OpenAI could split. The tech giant’s partnership with the ChatGPT developer gave it a head start in the artificial-intelligence race, but that could now be at risk. Microsoft has invested $13 billion in OpenAI since 2019. However, the Windows developer doesn’t currently own equity in the latter, instead receiving a share of future profits.

In addition, OpenAI has been making its own moves independent of Microsoft of late to make its own path. Earlier this month, OpenAI revealed it is looking to release an AIto rival Google Chrome. The AI powerhouse will use artificial intelligence to change the way consumers browse the web. Some reports suggest the OpenAI web browser could come before the end of the summer.

If Microsoft and OpenAI were to reach this new deal, MSFT investors could flock to the stock and send it higher. Over the last several months, the developer behind Windows has been taking an AI-first initiative, even shedding jobs to automate tasks with artificial intelligence technology. Investors appear to think of these moves as positive and have sent their price projections for MSFT stock higher of late. Forecasts are being revised across Wall Street, projecting $525 as the next goal. That could be achieved should Microsoft and the ChatGPT developer ink a new deal.