Microsoft's AI infrastructure spending to meet growing cloud services demand is outpacing Wall Street expectations, deepening investor fears about the costs of sustaining the boom. The technology giant reported a record capital expenditure of nearly $35 billion for its fiscal first quarter on Wednesday and warned spending would rise this year,

This new system means Microsoft will now have a stake in OpenAI with an approximate value of $135 billion. Microsoft will also have access to the company’s technology until 2032, including models that achieved AGI benchmarks — a more powerful type of AI that companies are aiming for. For OpenAI, it will remain Microsoft’s frontier model partner.

The deal removes a major constraint on raising capital for OpenAI, which was founded as a nonprofit AI safety group.

Microsoft and OpenAI unveil a deal extending IP rights, adding independent AGI verification, and giving both sides more freedom while maintaining Azure ties.

Microsoft's CEO, Satya Nadella, told investors that the company plans to double its data center footprint over the next two years.

Microsoft and OpenAI announced a restructuring deal on Tuesday that frees the ChatGPT maker to move away from its nonprofit roots and likely go public so it can finance CEO Sam Altman's ambitious plans to develop data centers and cutting-edge technology.

Microsoft and OpenAI announced the long-awaited details of their new partnership agreement Tuesday morning — with concessions on both sides that keep the companies aligned but not in lockstep as they move into their next phases of AI development.

The new arrangement solidifies OpenAI's position as a profit-seeking enterprise, ending nearly a year of restructuring discussions that had drawn scrutiny from regulators and investors. Under

Microsoft and OpenAI reached a deal to allow the ChatGPT maker to restructure itself into a public benefit corporation, valuing OpenAI at $500 billion and giving it more freedom in its business operations.

Under the new pact, Microsoft will get a 27% ownership stake in OpenAI worth about $135 billion, the companies said in a statement Tuesday. In addition, Microsoft will have access to the artificial intelligence startup’s technology until 2032, including models that achieved the benchmark of AI general intelligence.

The memos mostly rehash what the company reports publicly, but often they show what developments the executive deems most important.