Microsoft Corporation (MSFT) Reportedly Changing Its Deal With ChatGPT

Microsoft Corporation (MSFT) is revising the terms of its deal with ChatGPT parent OpenAI, The Financial Times reported today, according to Schwab Network.

The emerging deal would enable OpenAI to go public while protecting MSFT’s access to the start-up’s technology, Caroline Woods, Schwab Network’s Senior Markets Correspondent, stated.

More Details and Unanswered Questions

The new agreement would protect MSFT’s access to OpenAI’s “cutting-edge AI models,” Woods noted.

But an unresolved issue is the amount of equity in the start-up that Microsoft Corporation (MSFT) would receive, she stated. Microsoft has invested “$13 billion plus” in OpenAI since 2019, the correspondent noted.

The tech giant has reportedly agreed to forego a portion of its equity stake in return for the right to utilize new technologies developed by OpenAI after 2030, Woods stated.

More About Microsoft Corporation (MSFT) Stock

Nearly 90% of analysts who cover MSFT have a Buy rating on the shares, but their median price target of $500 is only about 12% above the name’s current price, Woods reported.

The Recent Price Action of MSFT

In the last month, MSFT has gained 16%, while the shares have advanced 9% in the last three months.

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This article is originally published at Insider Monkey.