Redburn lifts Microsoft price target to $440 from $400

• Microsoft AI chief Mustafa Suleyman said China's AI progress should not be used as a reason to avoid guardrails, calling for human control and shared safety standards.
• Michael Burry raised concerns over the scale of hyperscalers' AI infrastructure commitments, arguing that rapidly changing hardware could create challenges for long-lived data-center investments.
• The DOJ's support for Microsoft and OpenAI in The New York Times copyright case reportedly caught the USPTO and Copyright Office off guard, adding another layer to Microsoft's AI-related legal landscape.

Microsoft Corp (MSFT) was in the limelight on Monday after Rothschild & Co Redburn raised its price target on the software giant to $440 from $400 while keeping a 'Neutral' rating on the shares, citing higher valuation multiples following a broader software-as-a-service re-rating. The firm updated its model after Microsoft's latest earnings report, according to The Fly.

MSFT stock was trading 0.4% higher in early premarket trade, at the time of writing.

Redburn's revised target reflects the firm's updated valuation following the broader re-rating across SaaS stocks. It comes as Microsoft navigates a wider industry debate about the pace and risks of AI buildout. The company's AI chief has publicly spoken about safety guardrails, while the 'Big Short' investor Michael Burry questioned the durability of hyperscalers' infrastructure investments.

Microsoft AI Chief Defends AI Guardrails Amid China Debate

Microsoft AI chief Mustafa Suleyman said concerns over China's progress in artificial intelligence should not be used as a reason to avoid putting guardrails around the technology, according to a Bloomberg report published Sunday.

Separately, speaking on CNN's Fareed Zakaria GPS, Suleyman said, "I don't think we should use China as the bogeyman for not making progress on our own efforts" on AI safety. He said AI systems should have clear guardrails and remain under human control.

Suleyman also said regulation should focus on creating shared norms and safety standards and should not necessarily slow AI development. His comments followed the release of a Microsoft AI team manifesto outlining principles for the company's development of advanced AI systems.

Burry Questions Durability Of Hyperscalers' AI Infrastructure

The AI infrastructure debate also extends to the economics behind the AI buildouts. In a Substack post over the weekend, investor Michael Burry raised concerns about the gap between the long life of data-center infrastructure and the much faster pace of AI hardware development.