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Will Microsoft (MSFT) Part Ways With OpenAI?

Microsoft Corporation (NASDAQ:MSFT) is one of the 12 Best Stocks to Buy and Hold for the Long Term. On June 19, the Financial Times reported the long-standing partnership between Microsoft Corporation (NASDAQ:MSFT) and OpenAI might come to an end as tensions persist between the two on key issues including the future stake of MSFT in OpenAI.

The partnership between the two began in 2019 with Microsoft Corporation (NASDAQ:MSFT)’s $1 billion investment in OpenAI. Under the partnership, Microsoft is entitled to 49% of OpenAI Global LLC’s profits, capped at roughly 10 times its investment. OpenAI operates as a “capped profit” company, meaning investor returns are limited beyond a certain threshold.

A development team working together to create the next version of Windows.

Microsoft Corporation (NASDAQ:MSFT) has invested more than $13 billion to date and has played a key role in positioning the company as a market leader. However, the tensions have revolved around the future stake of MSFT in OpenAI. According to the Financial Times, the discussion regarding the stakes has ranged from 20% to 49%, however, no decision has been reached yet.

OpenAI requires approval from Microsoft Corporation (NASDAQ:MSFT) to complete its transition as a public benefit corporation. On the other hand, Microsoft plans to keep its existing commercial contract until 2030. The WSJ also reported that both companies are discussing the existing terms of Microsoft’s investment and the future stake.

“We have a long-term, productive partnership that has delivered amazing AI tools for everyone. Talks are ongoing and we are optimistic we will continue to build together for years to come” said Microsoft Corporation (NASDAQ:MSFT) and OpenAi in a joint statement.

While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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