Microsoft (MSFT) stock has taken a hit during Tuesday’s trading session following rumors of a potential split with OpenAI. The tech giant’s partnership with the ChatGPT developer gave it a head start in the artificial-intelligence race, but that could now be at risk. Indeed, OpenAI’s executives are debating whether to accuse Microsoft of anticompetitive behavior. The AI company is even contemplating seeking a federal regulatory review of the terms of their contract in an escalating dispute between the partners, according to a Wall Street Journal report.
Last month, OpenAI and Microsoft began revising their partnership, hinting at murky waters ahead. Microsoft has invested $13 billion in OpenAI since 2019. However, the Windows developer doesn’t currently own equity in the latter, instead receiving a share of future profits. The two companies conflict on what stake Microsoft might receive in a future restructuring, while another issue is the terms of OpenAI’s acquisition of coding start-up Windsurf and whether Microsoft will receive access to its intellectual property, according to WSJ.
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The investment has meant wonders for Microsoft and MSFT stock, with investors bullish due to the company’s continued work in AI development, as that sector continues to develop. Microsoft stock, despite this news, remains up around 4% this week. While OpenAI is yet to go public, the company has also succeeded strongly since its inception and partnership with Microsoft.
Microsoft shares were down 0.7% in early trading Tuesday, and are down an additional percent at the time of writing. MSFT stock has been in recovery since April’s slump and is now up 5% YTD. Furthermore, the stock is trading near the top of its 52-week range and above its 200-day simple moving average.