Microsoft Stock Toward a Record High
Microsoft and OpenAI’s partnership is one of the hottest tie-ups in tech right now.
The relationship has also produced conflict and confusion behind the scenes, according to people familiar with the matter.
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Microsoft stocks are on a roll!
Shares of the software maker were up more than 2% midday, putting them on course to close above their record high of $343.11 hit on Nov. 19, 2021.#Microsoft #ai #OpenAI pic.twitter.com/cpZAdsggqJ
— The_Journalbiz (@the_journalbiz) June 15, 2023
Factset chart on Microsoft
Microsoft invested billions to get early access to the generative artificial intelligence technology of much smaller OpenAI, a forerunner in the field. But it specifically invested only 49%, a setup that helps the arrangement avoid antitrust scrutiny.
The result is a kind of open relationship—together, but not exclusive. OpenAI has been arming some of Microsoft’s biggest rivals, while Microsoft has effectively limited the potential search-engine customers for OpenAI.
There are some strong alignments. Microsoft hosts OpenAI’s technology on its cloud and increasingly stitches it into its popular products, giving the software giant new bragging rights over longtime rival Google as well as others.
Microsoft Chief Executive Officer Satya Nadella and OpenAI CEO Sam Altman sing each other’s praises at events declaring the start of a new era of computing.
Recently though Microsoft is on a tear.
Shares of the software maker were up more than 2% midday, putting them on course to close above their record high of $343.11 hit on Nov. 19, 2021. If Microsoft manages to hold onto its gains through the close, it will have risen for six straight sessions.
