Microsoft Corporation (MSFT) Reportedly Changing Its Deal With ChatGPT

Microsoft Corporation (MSFT) is making changes to its deal with ChatGPT parent OpenAI, as reported by The Financial Times through Schwab Network.

The updated agreement is said to allow OpenAI to go public while safeguarding Microsoft’s access to the start-up’s innovative technology, according to Caroline Woods, Schwab Network’s Senior Markets Correspondent.

The revised terms aim to ensure Microsoft’s continued access to OpenAI’s state-of-the-art AI models, Woods highlighted. However, a key unresolved aspect is the extent of equity that Microsoft Corporation (MSFT) would receive in the start-up. Microsoft’s investment in OpenAI has totaled over $13 billion since 2019, the correspondent pointed out.

Reportedly, Microsoft has agreed to reduce its equity stake in exchange for the rights to utilize new technologies developed by OpenAI post-2030, Woods added.

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 is only approximately 12% higher than the current price, as per Woods.

Over the last month, MSFT has seen a 16% increase, with a 9% rise in the last three months. Despite acknowledging Microsoft’s potential, there is a belief that AI stocks offer greater promise for delivering higher returns in a shorter timeframe. Notably, there is an AI stock that has shown growth since the beginning of 2025 while other popular AI stocks have declined by around 25%. For those interested in a more promising AI stock trading at less than 5 times its earnings, a report on the cheapest AI stock is recommended.

For more investment insights, readers can explore articles on the “20 Best AI Stocks To Buy Now” and “30 Best Stocks to Buy Now According to Billionaires” on Insider Monkey.

Disclosure: None. This article was originally published on Insider Monkey.