Microsoft Shares Slip Amid Copyright Litigation for OpenAI
Microsoft's shares slipped by approximately 0.4% to $492.22 on Wednesday morning as it entered the summary-judgment phase of consolidated copyright litigation brought by authors and news organizations, including The Authors Guild.
The lawsuit claims that Microsoft and its AI partner OpenAI infringed copyrights and cannot rely on fair use. However, the defendants are pushing for a different ruling through their own motions.
A potential tougher copyright standard could force more licensing deals, tighter dataset controls, and heavier documentation across future AI models.
Microsoft generated $59.3 billion in quarterly cloud revenue as of June, with over 30 million paid Microsoft 365 Copilot seats. The stakes stretch far beyond this courtroom, as a defense victory would protect greater operating freedom for the tech giant.