After Microsoft (MSFT) and OpenAI announced a restructuring of their partnership, BofA analyst Brad Sills sees a “plethora of positives” in a deal that the firm sees reinforcing Microsoft’s position as a leading AI infrastructure player for frontier AI. Microsoft will have a 27% stake in OpenAI with an estimated value of $135B, will retain access to OpenAI’s technology through 2032, got a commitment of $250B to Azure services, and Azure exclusivity for OpenAI API products, highlights the analyst, who reiterates a Buy rating and $640 price target on Microsoft shares.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on MSFT:
- Options Volatility and Implied Earnings Moves Today, October 29, 2025
- ‘We Will Be Keeping a Close Eye on OpenAI’: California on New Deal with Microsoft (MSFT)
- OpenAI’s promise to stay in California helped path for IPO, WSJ reports
- Microsoft’s New OpenAI Deal Knocks Down ‘Number One’ Obstacle for MSFT Stock
- These Are the Stocks Reporting Earnings Today on October 29, 2025