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Microsoft (MSFT) stock jumped on Tuesday after the software giant reached a deal with OpenAI that values its stake in the artificial intelligence firm at $135 billion. Microsoft will hold a 27% stake in OpenAI as the ChatGPT creator restructures as a public benefit corporation. The restructuring clears the way for OpenAI to eventually become a publicly traded company. OpenAI also signed a deal to purchase an incremental $250 billion of Azure cloud computing services from Microsoft. Microsoft and OpenAI have been partners since 2019. The new agreement preserves key elements of their partnership. OpenAI remains Microsoft's frontier model partner and Microsoft continues to have exclusive intellectual property rights and Azure application programming interface exclusivity until OpenAI reaches artificial general intelligence, or AGI. On the stock market today, Microsoft rose 2% to close at 542.07. Earlier in the session, it climbed as high as 553.72. Microsoft stock is in a cup base with a buy point of 555.45, according to IBD MarketSurge charts. Microsoft stock is on two IBD stock lists: Long-Term Leaders and Tech Leaders. Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks. YOU MAY ALSO LIKE
