Microsoft (MSFT) announced a major shift in its business on Monday, April 27, 2026, as it ends its exclusive agreement with OpenAI. The tech giant will no longer share revenue with its primary AI partner, marking a new phase for the most famous pairing in the industry. This move allows both companies to work with other firms to keep up with the fast-moving tech world.
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The decision to change the agreement comes as both firms look to grow in different directions. Microsoft stated in a blog post that, “The rapid pace of innovation requires us to continue to evolve our partnership to benefit our customers and both companies,” proving that the old rules no longer fit the current market.
Microsoft previously held the sole rights to use OpenAI’s tools in its cloud, but those days are over. Despite the change, Microsoft still holds a 27% ownership stake in the startup, keeping it tied to the future of the firm.
OpenAI Pursues New Cloud Rivals
OpenAI is now moving to work with other providers to get the computing power it needs. Building and running smart software requires a huge amount of digital space, and the startup is already talking to Amazon (AMZN) to expand its reach.
This change allows OpenAI to reach a much larger group of users without being locked into a single provider.
The market reacted quickly to the news on Monday morning. Microsoft shares dropped about 3% in early trading as investors weighed the loss of the exclusive deal. At the same time, Amazon shares gained about 1% as the market bet that OpenAI will move a large portion of its business to Amazon’s servers.
Is Microsoft a Good Stock to Buy?
According to TipRanks, Microsoft stock has received a Strong Buy consensus rating, with 33 Buys and two Holds assigned in the last three months. The average 12-month MSFT stock price target is $570.30, suggesting a potential upside of 35.7% from the current level.
