Microsoft positioned favorably to navigate infringement suit, says Macquarie

Macquarie analyst Frederick Havemeyer keeps an Outperform rating and $430 price target on Microsoft following today’s announcement that New York Times filed suit against Microsoft and OpenAI in the U.S. Southern District of New York for alleged copyright infringement and financial impacts resulting from the training and commercialization of OpenAI’s GPT family of models. This will be the copyright suit to watch as the Times appears to allege copyright infringement throughout the entire LLM development and deployment lifecycle, the firm states, adding however that it believes that Microsoft is positioned favorably to navigate this and other potential cases and that hyperscalers like Microsoft are best positioned to strike data licensing agreements as necessary or to help partners like OpenAI do the same.