Why Microsoft (MSFT) Shares Are Climbing Today?

Microsoft MSFT said Tuesday it agreed a revised deal with OpenAI that values its stake in the AI developer at about $135 billion, a move that pushed the stock higher.

Shares rose about 3% on Tuesday morning after Microsoft said the revised arrangement would represent roughly 27% of OpenAI on an as-converted diluted basis post-recapitalization, down from about 32.5% under prior terms excluding recent funding rounds.

Under the agreement, Microsoft retains exclusive Azure API rights and certain intellectual-property arrangements through 2032, and holds expanded IP protections for models developed with safeguards. The terms exclude OpenAI consumer hardware from Microsoft's IP rights, and Microsoft relinquishes a prior right of first refusal for some OpenAI compute services, the company said.

The pact also lays out commercial terms for Microsoft's cloud business: OpenAI has committed to substantially more Azure services, while API products sold to third parties remain Azure-exclusive. Non-API products may be hosted on other cloud providers, the statement said.

Microsoft said the new framework preserves its ability to pursue advanced AI work, including independent AGI research, and supports broader commercial cooperation with OpenAI and third parties.