Microsoft to Invest in OpenAI’s $100B Round While Bucking Magnificent Seven Downtrend
Microsoft plans to invest in OpenAI’s $100+ billion funding round at a pre-money valuation of $730 billion, supporting a potential valuation above $850 billion. During the AI sector reset, Microsoft shares underperformed peers but stood out as the only Magnificent Seven stock to climb, showcasing defensive strength.
1. OpenAI Round Surpasses $100 Billion
The funding round has commitments from Amazon (up to $50 billion), SoftBank ($30 billion), Nvidia ($20 billion) and Microsoft, valuing OpenAI at $730 billion pre-money and over $850 billion post-money if fully subscribed.
2. Microsoft’s Strategic AI Investment
By participating in this round, Microsoft deepens its AI partnership with OpenAI, potentially securing access to future AI developments and enhancing its competitive position within AI-driven cloud services.
3. Microsoft’s Stock Strength During AI Volatility
During an AI sector reset that saw many peers decline, Microsoft shares posted gains, standing out as the only Magnificent Seven stock to climb and highlighting its defensive resilience.