OpenAI Aims to Raise Additional $10 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy MSFT?
Source: seekingalpha
- Fundraising Initiative: OpenAI is looking to raise an additional $10 billion by the end of March, building on its recently confirmed $110 billion fundraising effort, which underscores strong market demand and investor confidence.
- Equity Sale: The company may sell billions in shares to limit dilution for current shareholders, a strategy aimed at attracting more investors and enhancing the stability of its capital structure.
- Key Investors: This fundraising will further solidify OpenAI's relationships with major investors like Amazon, Nvidia, and SoftBank, who contributed $50 billion, $30 billion, and $30 billion respectively, indicating strong market confidence in its future growth.
- Valuation Surge: OpenAI's for-profit arm, OpenAI Group, is currently valued at over $180 billion, reflecting its leadership position and growth potential in the AI sector, which is expected to positively impact companies like Microsoft and Oracle.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 401.720
Low
500.00
Averages
631.36
High
678.00
Current: 401.720
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Microsoft Stock Soars 680% Over Past Decade
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- Strong Cloud Growth: Microsoft's Azure cloud segment achieved a 39% year-over-year revenue growth in the latest quarter, with a backlog of $625 billion, indicating its leadership in the generative AI space and a high-margin business model that investors favor.
- Valuation Adjustments Impact: Microsoft recently lost its premium status, now trading at a market-matching P/E ratio, which has affected investor confidence regarding its future growth, particularly due to valuation fluctuations from its 27% stake in OpenAI.
- Optimistic Future Growth Outlook: Despite recent stock sell-offs, Wall Street analysts project a 16% revenue growth for this fiscal year and 15% for the next, suggesting that the company's robust performance in AI infrastructure will continue to support its long-term growth potential.
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- Contract Funding Assurance: The new capital will support OpenAI's $250 billion compute contract with Microsoft and $300 billion contract with Oracle, ensuring its funding needs for the coming years and further solidifying its market position.
- Microsoft Valuation Boost: Analysts expect a significant increase in the value of Microsoft's stake in OpenAI, estimating that if diluted, Microsoft's ownership could be worth around $200 billion, or about 7% of its market cap, making its current valuation multiples more attractive.
- Oracle's Execution Challenge: While the funding round initially seems positive for Oracle, analysts express concerns about its ability to execute contracts effectively, especially as discussions shift to the ROI of AI and the growing commitment between OpenAI and Amazon Web Services.
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- Investment Announcement: OpenAI has announced a significant investment of $110 billion.
- Valuation Context: This investment comes at a pre-money valuation of $730 billion.
- Major Contributors: The funding includes $30 billion from SoftBank, $30 billion from NVIDIA, and $50 billion from Amazon.
- Strategic Implications: This substantial financial backing highlights the growing interest and confidence in AI technologies and OpenAI's potential.
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- Security Concerns: Trump stated on social media that Anthropic's technology poses risks to U.S. national security and troop safety, highlighting negative implications for the company's future and investor concerns about its prospects.
- Industry Response: Anthropic's CEO indicated that the company cannot allow the Pentagon to use its models without limitations, reflecting industry-wide concerns about ethical boundaries in AI technology use, which may affect government contracts for other AI firms.
See More
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- Fundraising Initiative: OpenAI is looking to raise an additional $10 billion by the end of March, building on its recently confirmed $110 billion fundraising effort, which underscores strong market demand and investor confidence.
- Equity Sale: The company may sell billions in shares to limit dilution for current shareholders, a strategy aimed at attracting more investors and enhancing the stability of its capital structure.
- Key Investors: This fundraising will further solidify OpenAI's relationships with major investors like Amazon, Nvidia, and SoftBank, who contributed $50 billion, $30 billion, and $30 billion respectively, indicating strong market confidence in its future growth.
- Valuation Surge: OpenAI's for-profit arm, OpenAI Group, is currently valued at over $180 billion, reflecting its leadership position and growth potential in the AI sector, which is expected to positively impact companies like Microsoft and Oracle.
See More
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- Impressive Stock Performance: Microsoft's stock has surged approximately 680% over the past decade, transforming a $10,000 investment into $78,010, significantly outperforming the S&P 500's 260% return, highlighting its strong market appeal and investment value.
- Strong Cloud Growth: Microsoft's Azure cloud segment achieved a 39% year-over-year revenue growth in the latest quarter, with a backlog of $625 billion, indicating its leadership in the generative AI space and a high-margin business model that investors favor.
- Valuation Adjustments Impact: Microsoft recently lost its premium status, now trading at a market-matching P/E ratio, which has affected investor confidence regarding its future growth, particularly due to valuation fluctuations from its 27% stake in OpenAI.
- Optimistic Future Growth Outlook: Despite recent stock sell-offs, Wall Street analysts project a 16% revenue growth for this fiscal year and 15% for the next, suggesting that the company's robust performance in AI infrastructure will continue to support its long-term growth potential.
See More
OpenAI Secures $110B Funding Round, Impacts Microsoft and Oracle
- Massive Funding Round: OpenAI's announcement of securing $110 billion in funding at a pre-money valuation of $730 billion and a post-money valuation of $840 billion alleviates concerns about its ability to pay bills, positively impacting Microsoft and Oracle.
- Contract Funding Assurance: The new capital will support OpenAI's $250 billion compute contract with Microsoft and $300 billion contract with Oracle, ensuring its funding needs for the coming years and further solidifying its market position.
- Microsoft Valuation Boost: Analysts expect a significant increase in the value of Microsoft's stake in OpenAI, estimating that if diluted, Microsoft's ownership could be worth around $200 billion, or about 7% of its market cap, making its current valuation multiples more attractive.
- Oracle's Execution Challenge: While the funding round initially seems positive for Oracle, analysts express concerns about its ability to execute contracts effectively, especially as discussions shift to the ROI of AI and the growing commitment between OpenAI and Amazon Web Services.
See More
OPENAI: UNVEILING $110 BILLION IN NEW FUNDING WITH A $730 BILLION PRE-MONEY VALUATION
- Investment Announcement: OpenAI has announced a significant investment of $110 billion.
- Valuation Context: This investment comes at a pre-money valuation of $730 billion.
- Major Contributors: The funding includes $30 billion from SoftBank, $30 billion from NVIDIA, and $50 billion from Amazon.
- Strategic Implications: This substantial financial backing highlights the growing interest and confidence in AI technologies and OpenAI's potential.
See More
Trump Orders U.S. Agencies to Halt Use of Anthropic Technology
- Government Ban: President Trump has ordered all U.S. federal agencies to immediately cease using technology from AI company Anthropic, a move that could jeopardize its $200 million contract with the Pentagon and impact future government business.
- Contract Pressure: The Defense Department has pressured Anthropic to agree by 5:01 p.m. ET Friday to allow its technology for all lawful purposes, or face being labeled a 'supply chain risk,' potentially damaging the company's market reputation.
- Security Concerns: Trump stated on social media that Anthropic's technology poses risks to U.S. national security and troop safety, highlighting negative implications for the company's future and investor concerns about its prospects.
- Industry Response: Anthropic's CEO indicated that the company cannot allow the Pentagon to use its models without limitations, reflecting industry-wide concerns about ethical boundaries in AI technology use, which may affect government contracts for other AI firms.
See More
OpenAI Aims to Raise Additional $10 Billion
- Fundraising Initiative: OpenAI is looking to raise an additional $10 billion by the end of March, building on its recently confirmed $110 billion fundraising effort, which underscores strong market demand and investor confidence.
- Equity Sale: The company may sell billions in shares to limit dilution for current shareholders, a strategy aimed at attracting more investors and enhancing the stability of its capital structure.
- Key Investors: This fundraising will further solidify OpenAI's relationships with major investors like Amazon, Nvidia, and SoftBank, who contributed $50 billion, $30 billion, and $30 billion respectively, indicating strong market confidence in its future growth.
- Valuation Surge: OpenAI's for-profit arm, OpenAI Group, is currently valued at over $180 billion, reflecting its leadership position and growth potential in the AI sector, which is expected to positively impact companies like Microsoft and Oracle.
See More
Sphera Fully Exits Check Point Investment
- Complete Exit: Sphera Management Technology Funds Ltd fully sold its 15,000 shares of Check Point Software Technologies in Q4 2025, with a trade value of $3.10 million, resulting in a total position valuation drop to zero, indicating a pessimistic outlook on the stock's future performance.
- Position Change: Following this transaction, Check Point comprised only 1.0% of Sphera's AUM, and the complete exit suggests a loss of confidence in the stock, likely due to increasing competition in the cybersecurity sector and uncertainties brought by AI.
- Poor Market Performance: As of February 17, 2026, Check Point's share price stood at $165.02, down 25.1% over the past year, significantly underperforming the S&P 500 by 37.61 percentage points, reflecting market concerns regarding its growth prospects.
- Financial Metrics Analysis: Check Point's revenue grew by only 6% in 2025, lagging behind peers like CrowdStrike and Palo Alto Networks, and despite positive net income, its modest 17 P/E ratio failed to drive a stock recovery, potentially prompting Sphera to reallocate its capital elsewhere.
See More
