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

The new agreement values Microsoft’s 27% stake at $135 billion and extends its IP rights through 2032, giving Microsoft investors “upside optionality.”

Microsoft and OpenAI announced Monday a series of new business partnerships aimed to advance artificial intelligence capabilities in U.S. commerce.

Morningstar analysts earlier this month published a list of the best artificial intelligence (AI) stocks to buy now. The top two spots were awarded to Microsoft ( MSFT +0.59%) and Taiwan Semiconductor Manufacturing ( TSM +1.54%). Other analysts may not classify them as the "best" AI stocks to buy now, but Wall Street is generally bullish.

Microsoft and OpenAI announced Tuesday a sweeping overhaul of their landmark artificial intelligence (AI) partnership, giving both companies greater independence while maintaining their close collaboration.

Microsoft is drawing a bright line at romantic, flirtatious and erotic content, even for adults, when it comes to its Copilot chatbot, the company’s AI CEO said in an interview.

The Australian Competition and Consumer Commission (ACCC) has taken Microsoft to court, accusing the tech giant of misleading about 2.7 million Australian consumers over changes to its Microsoft 365 subscriptions.

Mustafa Suleyman, the CEO of Microsoft AI, even described the new product in those terms in the announcement. “Copilot Mode in Edge is evolving into an AI browser that is your dynamic, intelligent companion,