Microsoft Bets Big on OpenAI as Legal Drama Builds

Microsoft ( (MSFT) ) has been popular among investors this week. Here is a recap of the key news on this stock.

Microsoft’s deep ties to OpenAI remain a key driver of investor enthusiasm, even as legal and strategic shifts add new risks. OpenAI, backed heavily by Microsoft’s capital and Azure infrastructure, has expanded its lower-priced ChatGPT Go plan to more than 170 countries after strong early demand. The $8-per-month tier offers access to the latest GPT-5.2 Instant model and far more usage than the free version, and OpenAI plans to test interactive ads in both the free and Go tiers in the U.S. These new revenue streams, coupled with ambitions to grow annual revenue from over $13 billion today toward a projected $100 billion by 2027, underscore the long-term upside for Microsoft’s AI monetization strategy through its stake and strategic partnership.

At the same time, Microsoft is reshaping its own operations around digital and AI. The company is closing traditional campus libraries in Redmond, Beijing, Dublin, and Hyderabad, converting them into AI-supported collaborative learning spaces and trimming spending on external research subscriptions. In gaming, Xbox Series X/S hardware sales have flattened as the current console generation ages and competitors widen their lead, adding a softer note to Microsoft’s consumer segment. Overlaying all this is the escalating legal battle between Elon Musk, OpenAI, and Microsoft: a federal judge has cleared Musk’s lawsuit for an April jury trial, where a jury will also weigh whether Microsoft helped OpenAI drift from its original nonprofit promises to donors. Despite these uncertainties, Wall Street remains firmly bullish on Microsoft stock, with a Strong Buy consensus from analysts and an average price target around $631 per share, implying roughly 36% upside from current levels as investors bet that AI-led growth will outweigh legal and hardware headwinds.