Microsoft Stake in OpenAI Could Surge to $324 Billion After IPO

Microsoft's (NASDAQ:MSFT) stake in OpenAI is currently valued at approximately $135 billion, representing about 27% of the company. This valuation could increase to around $324 billion if OpenAI's IPO nears its estimated value of $1.2 trillion in 2027.

Amy Hood, CFO of Microsoft, stated that demand continues to exceed available supply, and the company expects to remain free cash flow positive in fiscal 2027.

Despite rising capital expenditures and OpenAI losses affecting GAAP earnings, Microsoft's revenue growth and commercial backlog continue to increase. The commercial remaining performance obligations reached $678 billion, up 84%, with nearly 90% of full-year Microsoft Cloud revenue coming from customers outside frontier model companies.