Why are Microsoft shares rising today, has OpenAI anything to do with it? Here’s the latest

Microsoft’s stock jumped 3% on Tuesday morning after the company announced a new revised deal with OpenAI. The new deal values Microsoft’s stake in OpenAI at about $135 billion, GuruFocus reported. Microsoft will now own 27% of OpenAI on an as-converted diluted basis after the recapitalization. Earlier, it held about 32.5%, excluding recent funding rounds.

Under the agreement, Microsoft keeps exclusive rights to OpenAI’s API on Azure, and certain intellectual property (IP) protections until 2032. However, Microsoft’s IP rights do not include OpenAI’s consumer hardware, which OpenAI is developing with designer Jony Ive, Yahoo Finance said.