Microsoft closes its worst quarter on Wall Street since the 2008, as almost all OpenAI gains wiped out

Microsoft has reportedly recorded its steepest quarterly decline since the 2008 financial crisis. The software giant’s stock dropped 23% in the first quarter amid investor sentiment that reportedly weakened around the company’s artificial intelligence (AI) strategy. According to a CNBC report, the decline in the company’s market value outpaced both its tech peers and the Nasdaq, which dropped 7% during the same period. The latest decline may have wiped out almost all the gains Microsoft made from its 2019 OpenAI investment.

The sell-off reflects concerns over Microsoft’s ability to balance heavy investment in AI infrastructure with delivering growth, even as it continues to lead in areas such as Windows and enterprise software.