This article first appeared on GuruFocus.
Microsoft's (NASDAQ:MSFT) restructured deal with OpenAI is turning heads on Wall Street, and for good reason.
The tech giant now holds a $135B stake in the ChatGPT maker, a move analysts say clears up long-standing investor uncertainty and sets the stage for faster AI growth.
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BNP Paribas analyst Stefan Slowinski called the new arrangement a door to more AI acceleration, noting that Microsoft can now fully embed OpenAI's value into its earnings outlook rather than treating it as a drag on profits. OpenAI's $250B commitment to Azure will also help offset concerns that Microsoft could miss out on future cloud revenue.
The deal's ripple effects stretch across tech. Oracle may benefit from new funding clarity, while Amazon could soon strike its own cloud deal with OpenAI. Google, meanwhile, could face fresh competition as OpenAI gains flexibility to expand into new areas along with advertising.
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Microsoft's $135 Billion OpenAI Deal Clears Path for AI Acceleration
Published 1 week ago
Oct 29, 2025 at 6:56 PM
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