OpenAI’s recent performance challenges have weighed on Microsoft’s stock, underscoring the risks of its deep AI partnership. Investor sentiment cooled as markets questioned Microsoft’s ability to deliver on AI-driven growth if its key partner underperforms.

Wider fears that AI could disrupt traditional software licensing and subscription models have prompted analysts to lower growth forecasts for Microsoft’s core business. The potential shift in revenue streams has become central to updated valuation and risk assessments.