Microsoft reported that its flagship cloud computing business experienced a slowdown in growth amid constraints on data center supply.

Microsoft is OpenAI's largest investor, with a 49% stake, translating to $14 billion. As part of its complicated partnership with the ChatGPT maker, Microsoft was once the exclusive cloud computing partner for OpenAI. However, OpenAI's $500 billion investment in computing infrastructure changes its relationship with Microsoft.

The Azure cloud division will grow at as much 32 per cent in its fiscal third quarter, not much faster than it did during the last three months of 2024

Microsoft has tested Wall Street's patience by plunking down huge amounts of cash in pursuit of profits from AI that have yet to satisfy investors.

Microsoft won’t be the sole cloud provider for OpenAI but can decide whether to deliver the capacity or allow another company to do it.

The tech giant’s revenue was up 12 percent to $69.6 billion, but investors are showing their nerves after a long boom for tech stocks.

The software giant was previously the exclusive cloud provider for OpenAI and now retains right of first refusal.

Japanese multinational conglomerate, SoftBank, is said to be in advanced talks to invest as much as $25 billion in OpenAI . According to the Financial Times, the investment could be part of a larger partnership, where SoftBank would invest over $40 billion into AI initiatives with the ChatGPT creator.

Microsoft gains $4.5 billion of annual revenue for every $1 increase in monthly fees from Microsoft 365/Office users. Read why MSFT stock is a Buy.

Microsoft and OpenAI are loosening the tight bond that connects them. In future, OpenAI will be able to obtain cloud capacities for its AI from elsewhere.

It also means that OpenAI’s API will be exclusive to Microsoft’s Azure cloud computing platform. Following around $14 billion investment into the AI company, Microsoft confirmed it remains "a ...