Microsoft Shares Drop 24% as OpenAI Rivalry Deepens and Copilot Falls Behind
Updated
Updated · 24/7 Wall St. · Jun 25
Microsoft Shares Drop 24% as OpenAI Rivalry Deepens and Copilot Falls Behind
3 articles · Updated · 24/7 Wall St. · Jun 25
Summary
Microsoft shares have fallen 24% this year, sharply lagging a market that is up 7% and reinforcing its status as an AI underperformer.
OpenAI’s shift from close partner to competitor has undercut Microsoft’s early AI advantage, leaving Azure without a clear edge and Copilot trailing Google, Anthropic and OpenAI.
The Wall Street Journal said Microsoft is playing catch-up in chatbots and losing users, feeding a view on Wall Street that the main AI winners may already be set.
Azure also stumbled in the latest quarter, while Microsoft has failed to turn its Windows and Office base into a strong AI distribution engine and lacks Apple’s vast hardware reach.