Microsoft (MSFT) stock hit it in Tuesday’s trading session following rumors of a possible split with Openai. Tech Giant’s partnership with ChatGPT developers has gotten a head start in the artificial intelligence race, but it can now be at risk. In fact, Openai executives are debating whether to blame Microsoft for anti-competitive behaviour. AI companies are considering seeking federal regulatory reviews of terms of contracts in escalating disputes between partners, according to a report in the Wall Street Journal.
Last month, Openai and Microsoft began revising their partnership, hinting at the forward Murky Waters. Microsoft has invested $13 billion in Openai since 2019. However, Windows developers currently do not own the latter stock and are receiving future profits instead. The two companies are at odds with what Microsoft may receive in future restructurings, but another issue is that, according to the WSJ, Openai is inconsistent with the conditions for getting coding for startup Windsurf and whether Microsoft will receive access to intellectual property.
This investment means a wonder for Microsoft and MSFT stocks, with investors bullishing as the sector continues to develop due to its ongoing work in AI development. Despite this news, Microsoft’s shares are up around 4% this week. Although Openai has not been released yet, the company has been highly successful since its launch and partnership with Microsoft.
Microsoft stocks fell 0.7% in early trading on Tuesday, a further decline at the time of writing. MSFT stocks have recovered from their poor performance in April and are currently up 5% YTD. Additionally, the stock is trading near the top of the 52-week range and above the simple 200-day moving average.
