By Timothy Green
Publication Date: 2026-01-31 12:10:00
Microsoft is dependent on OpenAI and struggling to sell its own AI-powered products.
Shares of Microsoft (MSFT 0.83%) tanked on Thursday following a quarterly report that spooked investors. While the headline numbers looked great, some cracks in the AI growth story started to emerge. A heavy dependence on OpenAI, soaring capital spending on short-lived CPU and GPU assets, and anemic adoption of Microsoft’s own AI products paint a rough picture for the tech giant.
Image source: Getty Images.
Putting most of its eggs in one broken basket
Microsoft’s remaining performance obligation now sits at $625 billion, an astounding figure. Here’s the problem: $281 billion of that total is tied to contracts with OpenAI. Yes, the same OpenAI that reportedly declared “code red” in December as competition gained ground. The same OpenAI that is now full steam ahead on putting ads into ChatGPT, a move once called a “last resort for us as a business model” by CEO Sam Altman.
Microsoft is going to…
