Wall Street Breakfast Microsoft, OpenAI chart new path
Sep 12, 2025
Microsoft and OpenAI are redefining their partnership with a shift towards a for-profit model. Warner Bros. Discovery saw its stocks rise amid rumors of a merger with Paramount Skydance. Apple is set to launch hypertension detection for the Apple Watch following FDA approval. The podcast also delves into trends in the media industry and highlights major movements in technology and aviation, including new product innovations that could reshape the market.
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Microsoft-OpenAI Restructuring Deal
- Microsoft and OpenAI signed a non-binding memorandum to let OpenAI restructure toward a for-profit model while keeping a nonprofit in control.
- OpenAI's nonprofit may receive over $100 billion from a targeted $500 billion valuation, pending regulatory approval.
Microsoft's Strategic Positioning
- Microsoft invested $1 billion in 2019 and $10 billion in 2023 and gained exclusive Azure sales rights and preferred tech access.
- The new memorandum preserves Microsoft as a key backer while the final agreement and regulator approvals are still pending.
Potential Paramount Skydance Bid
- Warner Brothers Discovery jumped after reports Paramount Skydance may make a majority cash bid backed by the Ellison family.
- A potential deal could combine major TV and studio assets and preempt a post‑split bidding war involving Amazon or Apple.