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Microsoft’s AI Bet Spurs Sharp Selloff as OpenAI Exposure Comes Into Focus

Investors question near-term payoffs given $120 billion in planned AI infrastructure alongside a sizable Azure backlog tied to OpenAI.

Overview

  • Microsoft shares trade more than 25% below their peak, marking the stock’s second-worst drawdown of the past decade.
  • Yahoo Finance reports roughly $281 billion of Azure’s $625 billion remaining cloud backlog is linked to OpenAI.
  • Microsoft plans to invest about $120 billion in AI infrastructure this year, elevating concerns if OpenAI’s trajectory weakens.
  • The company has acknowledged it is building its own AI models to lessen reliance on its OpenAI partnership.
  • OpenAI is reportedly seeking about $100 billion in fresh funding and has introduced new offerings such as Frontier and a new Codex model while acquiring OpenClaw.