Microsoft (MSFT) Stock: Tech Giant Locks 20% of OpenAI Revenue to 2032

TLDR

• Microsoft will take 20% of OpenAI’s revenue through 2032 under a revised deal.
• OpenAI can now use other compute providers — Microsoft lost its first right of refusal.
• Microsoft holds a 27% stake in OpenAI Group PBC, valued at around $135 billion.
• MSFT is down over 25% from its October highs, now trading at $397.24.
• The stock is at its cheapest forward earnings multiple in nearly three years, at 24x.

Microsoft (MSFT) stock is sitting at a three-year valuation low while quietly locking in one of the more interesting revenue deals in tech.

Microsoft Corporation, MSFT

The company will collect 20% of OpenAI’s total revenue through 2032, up from the original 2030 cutoff. The deal was updated last fall and shifts a portion of payments to later years.

One notable change: OpenAI now has the freedom to work with other compute providers. Microsoft gave up its first right of refusal on that front.

Microsoft Secures 27% Stake in OpenAI’s New Structure

When OpenAI moved toward becoming a public benefit corporation last October, Microsoft came along for the ride.

As part of that transition, Microsoft secured a 27% stake in OpenAI Group PBC. The entity is valued at roughly $135 billion.

Microsoft also kept its exclusive IP rights and Azure API exclusivity — those stay in place until an independent panel confirms AGI has been reached.

OpenAI Eyes $40 Billion in New Funding

OpenAI is raising up to $40 billion to expand data center capacity. Microsoft, Nvidia (NVDA), and Amazon (AMZN) are among those being approached.

Talks with SoftBank and Middle Eastern investors are also in progress. The round is expected to close in Q1 2026.

Back on the MSFT side, the stock has had a rough 2026. It’s down more than 25% from its October highs, closing at $397.24 on February 20 within a 52-week range of $344.79 to $555.45.

MSFT Valuation at a Three-Year Low

The selloff hasn’t been matched by any real deterioration in the business. In Q2 of fiscal year 2026, ending December 31, Microsoft posted 17% year-over-year revenue growth.

The stock now trades at 24x forward earnings — the lowest in nearly three years. The S&P 500 sits at 21.9x, putting Microsoft only slightly above the broader market on that measure.

Azure continues to grow and carries a large backlog of workloads still being brought online. Microsoft’s market cap stands at $2.9 trillion, with a gross margin of 68.59% and a dividend yield of 1.09%.

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