Microsoft's exclusive license talks with OpenAI fell apart, causing the stock to plummet and then rebound.

But I don't think this is necessarily a bad thing.
In the past few years, Microsoft's revenue sharing with OpenAI has never been publicly disclosed; it's not that they didn't want to say, but that it would be too embarrassing to reveal.
Now that it has shifted to a non-exclusive license, translated as: I can use you, or I can use others, you can go find other investors, but don't expect me to keep supporting you forever.
Azure will continue to sell computing power, but no longer needs to back OpenAI's business model, which also means Microsoft is effectively decoupled.
The recent sharp drop is an opportunity for those who want to get on board.