Microsoft Corp. (NASDAQ:MSFT) is one of the top 10 picks from Harvard University’s stock portfolio. The Harvard Management Co.’s portfolio composition shows that the managers substantially increased their position in Microsoft in Q1. Around 366,700 shares were added in Q1 2025, which increased the position by approximately 8x, giving it a 14% weight.
According to a June 19 report from the Financial Times, Microsoft and OpenAI are in the middle of complex negotiations to rework the terms of their long-standing partnership. A key point in the discussions is OpenAI’s proposal to convert from a non-profit model into a fully for-profit entity—a move that would require Microsoft’s consent and could shift the balance of control and economics in the relationship.
The discussions have become increasingly difficult, with Microsoft reportedly open to walking away if no agreement is reached. At issue is the size of Microsoft’s stake in a restructured OpenAI, given its more than $13 billion investment to date. If no new terms are agreed upon, Microsoft could continue operating under its current agreement, which guarantees access to OpenAI’s models and a 20% share of related revenues through 2030.
Other terms are also under review. Microsoft currently holds exclusive rights to distribute OpenAI’s products through Azure and also has rights to early access to the company’s infrastructure and models. With growing competition in the AI space, Microsoft is seeking to maintain these advantages, while OpenAI is under pressure to finalize its restructuring plan to meet investor conditions from its recent funding rounds.
Despite issuing a joint statement underscoring a positive working relationship, sources close to the matter suggest Microsoft is not in a hurry to revise a deal that already works in its favor. Meanwhile, OpenAI is working against a year-end deadline to secure approvals and retain investor commitments, including from SoftBank.
Microsoft recently made xAI’s Grok available to its Azure customers. This kind of moves not only broaden its AI portfolio, but also suggest that the company is positioning itself to rely less heavily on OpenAI if necessary. The outcome of these talks may have wider implications for how major tech players approach access to foundational AI models going forward.
Microsoft Corp. (NASDAQ:MSFT) develops and markets software, hardware, and cloud services. Its flagship products include the Windows operating system, the Microsoft Office suite, and the Azure cloud platform. Additionally, Microsoft owns LinkedIn, GitHub, and Xbox, extending its influence across various industries.
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