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OpenAI and Microsoft reach tentative deal after dispute over partnership terms

1. Microsoft and OpenAI reached a tentative agreement on partnership terms. 2. Disagreements over revenue splits and equity had challenged their alliance. 3. Microsoft has invested over $13 billion in OpenAI since 2019. 4. A non-binding memorandum of understanding has been signed. 5. Final contractual terms are being worked out to strengthen their collaboration.

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FAQ

Why Bullish?

A stable partnership with OpenAI enhances Microsoft's position in AI. Historical investments in tech align with price rises during innovation announcements.

How important is it?

The partnership with OpenAI is critical for MSFT’s future AI initiatives, affecting investor sentiment and strategic direction.

Why Long Term?

Settled partnership terms could boost MSFT's long-term AI strategy, akin to past successful tech partnerships that generated sustained growth.

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