Microsoft Corp (NASDAQ:MSFT) shares are trading higher Tuesday morning after the company announced the next chapter of its partnership with OpenAI.
- MSFT is charging ahead with explosive momentum. Get the market research here.
What To Know: Microsoft signed a new definitive agreement with OpenAI to support the company’s formation of a public benefit corporation (PBC). Following the recapitalization, Microsoft will hold a stake of approximately 27% in OpenAI Group PBC valued at approximately $135 billion.
The agreement preserves key elements of the existing partnership between the two companies. OpenAI will remain Microsoft's frontier model partner and Microsoft will continue to have exclusive IP rights and Azure API exclusivity until Artificial General Intelligence (AGI), which will now be verified by an independent expert panel.
Microsoft’s IP rights for both models and products will be extended through 2032. The company’s IP rights to research are set to remain in place through 2030 or until an expert panel verifies AGI.
Microsoft also said that OpenAI has contracted to purchase an incremental $250 billion of Azure cloud computing services. As part of the deal, Microsoft will no longer have a right of first refusal to be OpenAI's compute provider.
How To Buy MSFT Stock
By now you're likely curious about how to participate in the market for Microsoft – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
MSFT Price Action: Microsoft shares were up 2.55% at $545.07 at the time of publication on Tuesday, according to Benzinga Pro.
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