Bill Gates Told Satya Nadella 'You're Going To Burn This Billion Dollars' By Investing In OpenAI — But Microsoft's Bet Became A 100-Bagger

Core Insights - Microsoft Corporation's initial $1 billion investment in OpenAI has transformed into a stake valued at approximately $135 billion, marking a significant financial success for the company [1][2]. Partnership Evolution - The partnership between Microsoft and OpenAI has evolved since 2016, beginning with OpenAI utilizing Microsoft's Azure cloud services, which was initiated by a request from Elon Musk for Azure credits [4]. - The collaboration intensified in 2019 when OpenAI's CEO Sam Altman approached Microsoft to scale AI research, aligning with Microsoft's long-standing interest in natural language processing [4][5]. Financial Commitments - Under the new agreement, OpenAI has committed to purchasing an additional $250 billion in Azure cloud services, reinforcing Microsoft's position in the AI sector [6]. - Microsoft's intellectual property rights related to OpenAI have been extended through 2032, ensuring continued collaboration and innovation [6]. Market Impact - Following the announcement of the expanded partnership, Microsoft shares experienced a nearly 2% increase, reflecting positive market sentiment towards the company's strategic moves in AI [2].