Microsoft investors are keenly anticipating the company’s earnings amidst concerns over its AI partnership with OpenAI. While Microsoft has benefited significantly from exclusive licensing deals, propelling its Azure cloud business to a projected 34.8% revenue increase in the April-June quarter, negotiations for these terms are heating up as OpenAI approaches a public listing. The renegotiation could affect Microsoft’s access to OpenAI’s technologies, prompting mixed sentiments from analysts regarding Microsoft’s leverage in the discussions. Despite uncertainties, Microsoft’s stock has surged over 20% this year, buoyed by strong demand for Azure services and preemptive ordering by PC makers. Expected revenue for the quarter stands at $73.81 billion, marking a 14% rise. Additionally, capital expenditures are a focal point, especially after Alphabet increased its spending. Investors remain optimistic about Microsoft’s potential in the AI sector, suggesting considerable growth opportunities ahead.
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