OpenAI reportedly cut the pre-money valuation it is asking from new investors to $1.25 trillion from $1.4 trillion, a $150 billion reduction after some investors pushed back, though no reason was reported, nothing has been signed, and OpenAI declined to comment. A funding round of up to $30 billion led by UAE and Coatue investors is described as an opportunistic bridge before a possible IPO. The same day, Microsoft shares fell 2.23% to $521.08 and the Nasdaq Composite dropped 2.60% amid fears about AI spending. The article argues that Microsoft's Azure contract, including an extra $250 billion of cloud commitments from OpenAI, and a $678 billion backlog matter more than its OpenAI stake, which it puts at about 3-4% of Microsoft's value. Microsoft reports fiscal first-quarter results on October 28.
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Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $4.0T |
| Close on 10/22/2026 | 521.58 |
| Change that session | -2.13% |
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