Microsoft Corporation (MSFT) is making changes to its agreement with OpenAI, the parent company of ChatGPT, as reported by The Financial Times and Schwab Network. The revised deal is said to allow OpenAI to go public while safeguarding Microsoft’s access to the innovative technology developed by the start-up. According to Caroline Woods, Senior Markets Correspondent at Schwab Network, the new agreement will ensure MSFT’s continued access to OpenAI’s cutting-edge AI models.
One key aspect of the renegotiated deal that remains unresolved is the amount of equity that Microsoft will receive in OpenAI. Since 2019, Microsoft has invested over $13 billion in the start-up, but the specifics of their equity stake moving forward are still being ironed out. Reports suggest that Microsoft may be willing to relinquish a portion of its equity in exchange for the rights to utilize new technologies developed by OpenAI beyond the year 2030.
In terms of Microsoft Corporation (MSFT) stock, nearly 90% of analysts covering the company have a Buy rating on the shares. However, the median price target of $500 represents only a modest 12% increase from the current price of the stock. Despite the positive sentiment from analysts, some investors believe that AI stocks offer greater potential for higher returns in a shorter timeframe compared to MSFT.
Looking at the recent price action of MSFT, the stock has seen a 16% increase in the last month and a 9% gain over the past three months. While Microsoft is a solid investment option, there are AI stocks that have outperformed MSFT in recent years, with one AI stock showing significant growth since the start of 2025.
If you are interested in exploring AI stocks that offer promising returns at a lower valuation, consider checking out a report on the cheapest AI stock available. This stock trades at less than 5 times its earnings and may present a compelling investment opportunity for those looking to capitalize on the potential of AI technology.
In conclusion, Microsoft’s ongoing partnership with OpenAI and the potential changes to their agreement highlight the company’s commitment to innovation and leveraging cutting-edge technologies. As the tech industry continues to evolve, investors are advised to consider a diverse range of investment options, including AI stocks that show promise for delivering strong returns in the future.
