Microsoft Shares Slide 3% While OpenAI Trials $60 CPM ChatGPT Ads
Microsoft-backed OpenAI is testing $60 CPM contextual ads in ChatGPT free tiers, integrating Criteo with Best Buy and Target after attracting 910 million users ahead of a planned 2027 IPO. Microsoft shares fell 3% due to broader software weakness linked to Claude’s browser tasks and AWS AI layoffs.
1. OpenAI Ads Trial and Revenue Potential
Microsoft-backed OpenAI has launched experimental $60 CPM contextual ads within ChatGPT’s free and low-cost tiers, securing placements from Best Buy and Target through ad-tech partner Criteo. With 910 million registered users and a projected 2027 IPO, the trial represents a new potential revenue stream that could challenge Google and Meta’s dominance in digital advertising.
2. Microsoft Share Reaction
On the day of the trial announcement and sector updates, Microsoft shares fell 3%, underperforming a 4.2% drop in the broader software ETF. The pullback reflects investor caution over shifting software monetization models and intensifying competition in AI-driven products.
3. Software Sector Headwinds
Additional headwinds include Claude’s latest browser-based compute tasks, forecasts of decelerating growth at Atlassian, eight-month highs in 10-year Treasury yields, and AWS layoffs tied to AI agent deployment. These factors have strained sentiment across major software names, amplifying volatility for Microsoft stock.