Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis.

Good afternoon, today is Monday, April 27th, and I'm your host, Kim Khan.

Our top story so far, from Redmond and Beyond for OpenAI.

Microsoft's shares were under pressure after the company in OpenAI amended

their partnership agreement, making Microsoft's OpenAI license non-exclusive. Under the revised

terms, Microsoft remains OpenAI's primary cloud partner, and OpenAI products will continue to

launch on Azure first. However, if Microsoft cannot and chooses not to support the necessary

capabilities,

OpenAI is now free to seek alternative providers.

OpenAI can also bring its products to customers across other cloud platforms,

including Amazon Web Services.

Microsoft will retain a license to use OpenAI's intellectual property through 2032,

but that license is no longer exclusive.

As part of the updated deal, Microsoft will stop paying revenue share at OpenAI,

though it will continue to receive revenue share payments from OpenAI through 2030.

Seeking Alpha analysts, Julia Ostien said the estimated 45% of Microsoft's AI backlog

tied to OpenAI represents a major risk.

Still, she suggested those concerns may already be reflected in the stock. The market didn't fully believe OpenAI would be able to pay for the previously agreed capacity,

and for this reason I don't see this piece of news as majorly negative, Osteon said.

Separately, OpenAI is reportedly working with Qualcomm and Media Tech on smartphone processors,

with Luxshira's exclusive system co-design and manufacturing partner,

according to TF International Securities analyst Ming Shi Kuo.

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