Microsoft seeks changes in OpenAI partnership terms, risking strain, but retail sentiment remains neutral.

From StockTwits: 2024-12-26 20:40:13

Microsoft is reportedly seeking to convert OpenAI from a non-profit to a for-profit corporation, leading to potential partnership issues. The company’s $10 billion deal with OpenAI has allowed Microsoft to integrate AI technology into its products, giving it a competitive edge. However, reports suggest that Microsoft is pushing for changes in the partnership terms, including its equity stake, cloud provider exclusivity, and revenue share. Additionally, Microsoft may lose exclusive rights to OpenAI’s intellectual property once it achieves artificial general intelligence, defined as producing at least $100 billion in profits.

In a separate development, Microsoft is planning to incorporate internal and third-party intelligence models into its Microsoft 365 Copilot to reduce reliance on OpenAI. Despite these changes, Microsoft’s sentiment remains neutral among retail investors, with hopes of a Santa Claus rally to boost stock returns. A poll conducted on Stocktwits shows mixed expectations for Microsoft’s year-end price target, with shares currently trading at $438.11, up 17% for the year.



Read more at StockTwits: Microsoft-OpenAI Partnership Faces Strains; Retail Sentiment Dips Amid Underperformance Against Magnificent 7 Peers