12:08 PM EDT, 10/29/2025 (MT Newswires) -- Microsoft's ( MSFT ) revised agreement with OpenAI is a "positive" development that strengthens visibility into out-year Azure growth, UBS Securities said in a note Tuesday.

The firm said Microsoft's ( MSFT ) $250 billion commitment under the new deal is bigger than expected and could translate to annual spending over seven to eight years of $30 billion to $35 billion, "multiples" of OpenAI's current spending level.

While the revised agreement retains the artificial general intelligence clause, which could limit hosting exclusivity if AGI is achieved, the risk appears low as independent experts are now required to verify any AGI declaration, UBS said, adding that both companies have recently downplayed the term's relevance.

Microsoft ( MSFT ) maintained most of its application programming interface hosting exclusivity for OpenAI models and extended intellectual property rights to 2032, analysts noted.

UBS reiterated its buy rating on Microsoft's ( MSFT ) stock, with a $650 price target.

Microsoft ( MSFT ) shares were down about 1% in recent trading Wednesday.

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