During the Microsoft Build 2025 conference on May 19, Microsoft CEO Satya Nadella discussed the company’s significant investment in OpenAI, which resulted in a $3.1 billion decline in net income due to an equity method investment. Despite this drop, Microsoft’s net income rose to $27.7 billion, reflecting strong growth. Since 2019, Microsoft has committed $13 billion to OpenAI, with $11.6 billion already invested. Recently, OpenAI restructured as a nonprofit while maintaining a controlling stake in its for-profit counterpart. Now named the OpenAI Foundation, it holds a 26% stake in the for-profit entity, valued at $130 billion. Microsoft’s investment in OpenAI is currently valued at $135 billion. In addition, OpenAI has contracted to purchase an additional $250 billion in Azure services. While the partnership has been mutually beneficial, both companies are now identified as competitors in AI, particularly following OpenAI’s announcement of its own search engine, SearchGPT.
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