OpenAI’s $840B Valuation and $635 Price Target Bolster Microsoft Despite JFTC Raid
OpenAI’s $840 billion funding round boosts Microsoft’s valuation as its 27% equity stake eases investor concerns, while Citi maintained a Buy rating with a $635 price target citing Azure capacity growth and Copilot momentum. Japanese regulators raided Microsoft’s Tokyo offices over potential antitrust cloud licensing practices.
1. OpenAI Funding and Microsoft Stake
OpenAI secured an $840 billion valuation in its latest funding round, enhancing Microsoft’s strategic position given its 27% equity stake and mitigating investor concerns around AI assets.
2. Citi’s Buy Rating and Cloud Growth Outlook
Citi reiterated a Buy rating with a $635 price target, citing sustained momentum in Microsoft Copilot adoption within Microsoft 365 Commercial and anticipated stable Azure margins despite capacity constraints.
3. CrowdStrike Marketplace Integration
Microsoft and CrowdStrike expanded their partnership to allow customers of all sizes to purchase the Falcon cybersecurity platform directly through the Microsoft Marketplace, leveraging existing Azure spending commitments.
4. Japanese Antitrust Investigation
Japan’s Fair Trade Commission conducted raids on Microsoft’s Tokyo offices to investigate potential violations of the Antimonopoly Act for allegedly steering software users toward Azure and imposing higher fees on rival platforms; Microsoft Japan is fully cooperating and the probe may extend to the U.S. parent.