Now, that all seems to have resolved itself in Microsoft's favor. On Tuesday, OpenAI said it completed its recapitalization and simplified its corporate structure. The non-profit entity is now called the OpenAI Foundation, which has majority control of the for-profit component, OpenAI Group Public Benefit Corp. (PBC).

OpenAI is preparing for a $1 trillion IPO that could launch in 2026. The ChatGPT maker plans to raise at least $60 billion after completing restructuring.

The AWS partnership is OpenAI's first major cloud computing deal since striking a new agreement with Microsoft that gave it more flexibility.

Microsoft's total revenue climbed by 18% year over year to $77.7 billion, with adjusted earnings per share (EPS) jumping 23% to $4.13. The results bested analyst estimates of $75.3 billion in revenue and $3.67 in EPS, as compiled by LSEG.

The new agreement values Microsoft’s 27% stake at $135 billion and extends its IP rights through 2032, giving Microsoft investors “upside optionality.”

Both companies were back at it on Tuesday, announcing deals that once again added billions in value to public companies.

Jefferies named Broadcom its Top Pick with a $480 price target as custom AI chip demand surges from OpenAI, Google, and Meta.

The OpenAI CEO is known for not backing down from conflict. Over the weekend, OpenAI cofounder and Tesla CEO Elon Musk took shots at Altman, alleging he “stole a nonprofit.” Altman responded, “I helped turn the thing you left for dead into what should be the largest nonprofit ever.”

AMD is due to post third-quarter results on Tuesday afternoon. The report will put the stock's fiery one-month rally to the test.