Microsoft Stock Under Pressure: Company Distances Itself from OpenAI and Develops Own AI Models

In early June 2026, Microsoft released its own AI models for reasoning and strategically distanced itself from its partnership with OpenAI. The stock of the Redmond-based technology company fell by more than 13 percent by early June, while the broader market remained at high valuation levels.

Strategic Shift in Artificial Intelligence

With the release of its own reasoning AI models, Microsoft is signaling independence. Reasoning AI refers to AI systems that can draw logical conclusions and solve complex problems step by step—a capability that goes beyond simple language models. The development marks a strategic shift for the company, which previously relied heavily on OpenAI's technology, the creator of ChatGPT.

CEO Satya Nadella addressed the concentration of power in the AI sector on June 22, 2026, in the "The Big Money Show." He warned that a few AI giants could come to dominate the economy and emphasized that big tech companies need to earn the public's trust. The remarks come at a time when Microsoft itself ranks among the leading AI providers.

Cloud Business Grows at Double Digits

Despite the stock decline, Microsoft's cloud division Azure is reporting robust growth. In the last quarter, Azure grew by 40 percent, outpacing Amazon Web Services (AWS), which reported its fastest growth in 15 quarters. The cloud business is considered a central growth driver for Microsoft and encompasses computing power, storage, and services that businesses access over the internet.

The comparison with Amazon demonstrates the dynamics in the cloud market: while AWS is considered an established market leader, Microsoft has been able to gain market share with Azure in recent quarters. The integration of AI capabilities into cloud services is considered a decisive competitive factor.

Valuation and Market Environment

The S&P 500 is currently trading at a price-to-earnings ratio (P/E) of 27. The P/E ratio compares the stock price to company earnings and serves as a valuation metric—the higher the value, the more expensive the stock is relative to its earnings. Market observers describe Microsoft's current valuation levels as exceptional, as the company typically trades at a premium.

Analysts view the distancing from OpenAI differently. Supporters see it as a step toward greater technological independence and reduced reliance on external partners. Developing its own AI models gives Microsoft more control over product cycles and intellectual property.

Outlook for Investors in DACH Region

For investors in Switzerland, Germany, and Austria, currency developments are relevant: Microsoft trades on the Nasdaq in US dollars. Fluctuations in exchange rates between the dollar, euro, and Swiss franc affect returns in addition to stock price movements.

The combination of stock decline and solid cloud growth puts Microsoft in a position to meet market expectations for its AI strategy. The coming quarterly reports should show whether its own AI models deliver the desired impact and whether Azure can maintain its growth momentum.

Microsoft remains one of the world's largest technology companies with business segments in operating systems (Windows), productivity software (Office 365), gaming (Xbox), and cloud services. The strategic reorientation in the AI sector will shape the company's positioning in the coming years.