Hedge fund TCI cuts Microsoft stake citing AI disruption risks; court filings reveal OpenAI partnership has revenue-sharing cap and non-exclusive terms

Hedge fund TCI has sharply reduced its large stake in Microsoft, citing concerns about AI-driven disruption risks.

Court filings in the Elon Musk v. OpenAI case disclosed that Microsoft's OpenAI partnership includes a hard cap on revenue sharing and non-exclusive terms, details that emerged during Microsoft CEO Satya Nadella's trial testimony.

The developments raise questions for investors about how much Microsoft can rely on OpenAI over the long run and on what financial terms, particularly as the OpenAI partnership is central to Microsoft's AI pitch across cloud, productivity software, and consumer services.