Microsoft Accelerates OpenAI Cash Flows with $38B Cap, Ends Azure Revenue Share: Wedbush

Microsoft's revised OpenAI deal caps revenue sharing at $38 billion through 2030—avoiding up to $97 billion in payments—while delivering ~$6 billion in cash this year, up from ~$4 billion, with no deferrals. The agreement eliminates revenue sharing on Azure-hosted OpenAI models, locks in IP rights through 2032, and reduces exclusivity, boosting near-term AI monetization and cloud growth. Wedbush calls it bullish, maintaining Outperform and $575 target. This follows a May 10 setback: Microsoft's $1 billion Kenya data center with G42 stalled over government payment disputes, potentially delaying East African expansion.