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OpenAIMSFTartificial intelligence
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Related tickers and likely impact
MSFT
▼ Likely negativeMicrosoft
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 10/23/2026 | 524.51 |
| Change that session | +0.66% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- OpenAI Now Makes Up 11% of Microsoft's Revenue
In its quarterly filing for the three months ended September 30, submitted to the SEC on October 28, Microsoft reported $10.0 billion of revenue from OpenAI, about 10.8% of its $92.279 billion total. The figure includes revenue-sharing payments and commercial arrangements beyond Azure cloud purchases, and OpenAI is treated as a related party because Microsoft owns enough of it to count its share of OpenAI's results under the equity method. OpenAI's receivables rose to $7.2 billion at September 30 from $6.0 billion at June 30, while Microsoft's stake fell to an approximate 24% on an as-converted basis from about 25%. Revenue grew 19% and Azure grew 48%, and the article suggests growth would likely still look strong without OpenAI.
- Microsoft beats Wall Street estimates as Azure growth hits 48%
Microsoft (NASDAQ:MSFT) reported first-quarter revenue of $92.3 billion, up 19% and above the $90.69 billion analysts expected; adjusted earnings per share rose 18% to $4.89, versus an estimate of $4.73. Azure and other cloud services revenue grew 48% to $33.2 billion, above the roughly 45% growth analysts had forecast, while Microsoft Cloud revenue rose 30% to $63.9 billion. Capital expenditure was $39.4 billion, below the $46.59 billion expected, and commercial remaining performance obligation reached $677 billion, short of the $705.6 billion estimate. Microsoft also recorded a $207 million net gain tied to OpenAI and returned $10.2 billion to shareholders; shares rose over 5% in after-hours trading.
- OpenAI slashes valuation by $150bn
- OpenAI to bring AI models to Google's cloud, in further expansion beyond Microsoft
OpenAI will make its models available to developers through Google Cloud, putting them on all three of the top cloud infrastructure providers. The move follows OpenAI saying less than six months ago that Microsoft would no longer hold an exclusive license to its intellectual property, and Amazon announcing plans to host OpenAI models the day after. Google will bring GPT products to its model garden and Antigravity coding tool in the coming weeks. Google's cloud segment saw annualized revenue growth accelerate to about 82% in the second quarter from 63% in the first, while Amazon and Microsoft posted second-quarter cloud growth of 37% and 42%. OpenAI is courting investors at a $1.4 trillion valuation and targeting an initial public offering.
- Trump's FTC Subpoenas OpenAI and Anthropic. Inside the $500 Billion Threat Faced by Microsoft, Amazon, and Google
The U.S. Federal Trade Commission sent civil subpoenas to OpenAI and Anthropic on Oct. 15 as part of a consumer-protection probe, according to Axios. The demands seek documents on security incidents, safeguarding practices, marketing materials and privacy policies, and the FTC reportedly plans to have top AI executives testify. The combined stakes held by Microsoft, Amazon and Alphabet in the two labs total about $554 billion at recent valuations. The article argues the bigger financial risk lies in how the investigation could affect the price the labs fetch when they go public.
- Microsoft's AI Chief Says It Built a Better Model Than OpenAI's With a Quarter of the Computing Power
Microsoft AI said it finished pre-training MAI-Base-2, a mixture-of-experts model with 80 billion active and 2.8 trillion total parameters, trained on 16k GB200 chips over 38 days. CEO Mustafa Suleyman was reported telling staff internally that the model beats OpenAI's GPT-5.6 using about a quarter of the computing resources, but this comparison rests on private tests and OpenAI has not confirmed it. The model is still in post-training, and Microsoft plans to license its weights to partners through Foundry, though no release date, pricing, or public benchmarks have been given. MSFT rose 1.08% to $539.44 on October 15, then fell 0.47% after hours, a muted reaction. The article says the claim could create friction with OpenAI, in which Microsoft's stake is reportedly valued at $135 billion, while Azure growth remains the main driver of the stock.
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Latest news
- Microsoft beat estimates while Google looks at a value hit, and rising risks at Nvidia
The 8:30 show covers the day's top stories, including earnings from Microsoft (MSFT) and Alphabet (GOOGL)(GOOG), mounting risks at Nvidia (NVDA), and the new touchscreen laptop Apple (AAPL) just debuted.
- European Central Bank keeps key interest rate on hold at 2.5%
The European Central Bank held its deposit facility rate at 2.5% on Thursday, as expected, after a 25 basis point hike in September, even though euro zone headline inflation rose to 3.8% last month, the highest since September 2023. The Governing Council said rising energy prices pose upside risks to inflation and downside risks to growth, while underlying inflation and wages are broadly stable and financing conditions have tightened. Energy price inflation reached 18.8% amid Middle East turbulence. Deutsche Bank's Mark Wall said the policy path is harder to predict and expected one more hike to 2.75% in December, probably the end of the hiking cycle, while Christine Lagarde is still president. He added that the institution is bigger than any one person, but uncertainty remains about decisions next year after Lagarde's announced departure.
- Tech stocks hit hard after Samsung, Fortinet, and ServiceNow miss earnings
Samsung expects capital expenditure to rise 60% to $63 billion this year as it competes with SK Hynix and Micron, but its chip division operating income came in 2% below estimates and it is holding off on future shareholder payout plans until January. Fortinet's weak results hit cybersecurity stocks, and ServiceNow showed slowing bookings growth. A Bloomberg report said Marvell is in talks to buy Lumentum in a big deal, and Marvell shares fell sharply. The hosts said concerns over AI spending, financing costs, and Alphabet's business model are real, not just sentiment.
- Alphabet heads for a $400 billion drop in market value, the biggest in its history
Alphabet (GOOGL) fell about 13% in early trading Thursday after third-quarter results, putting it on track to erase more than $400 billion in market value, the second-biggest one-day loss ever for a US-listed company behind Nvidia's roughly $593 billion on Jan. 27, 2025. Google Cloud revenue more than doubled to about $31 billion and the Gemini app passed 1 billion users, but search revenue rose 12% to about $63 billion, short of the roughly $65 billion estimate. Free cash flow swung to a loss of about $9 billion as AI spending climbed, and the company's stakes in AI labs also weighed. Pivotal Research CEO Jeffrey Wlodarczak said bears will argue AI is starting to seriously hurt the search business, while CFRA's Angelo Zino said the pullback probably represents an opportunity. Alphabet has lost more than $1.3 trillion since its May record, and Amazon's results after Thursday's close will show whether the problem is specific to Google's search business.
- Monetary policy decisions
The ECB Governing Council decided to keep its three key interest rates unchanged: 2.50% on the deposit facility, 2.65% on main refinancing operations and 2.90% on the marginal lending facility. Energy prices have kept rising, posing upside risks to inflation and downside risks to growth, while underlying inflation has been broadly stable and wages show no material response yet. Financing conditions have tightened since the last meeting, which is likely to weigh on inflation and growth. The Council aims for inflation to stabilise at its 2% target in the medium term, is not pre-committing to a rate path, and stands ready to adjust all its instruments within its mandate.
- The Economy Could Be Growing Too Fast for Warsh
The Fed held its target range at 3.75% to 4% on October 28, 2026, in a 10-2 vote, with Lisa D. Cook and Beth M. Hammack favoring a 25-basis-point hike. Chair Kevin Warsh said first-half GDP was revised up to 2.4% from 1.8% and third-quarter growth is likely above 3%, but pushed back on the idea that the economy is overheating. The Atlanta Fed's GDPNow stood at 3.3%, and a futures-based measure put the odds of a December hike at 86.0%. Headline PCE inflation was 3.4% in August and core was 3.0%, mostly tied to energy and core goods affected by the Middle East conflict and tariffs, which rate hikes do little to address. SPY is up 13.26% year to date, but its large tech holdings make it sensitive to a 10-year yield above 5%, and its outlook weakens if September core PCE tops 0.3% or the yield passes its October 5 high of 5.31%.
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