HomeNewsArtificial IntelligenceMicrosoft closes at record high amid renewed optimism surrounding OpenAI

Microsoft closes at record high amid renewed optimism surrounding OpenAI

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Tuesday’s trading session saw Microsoft close at a record high of $360.53 on the back of renewed growth expectations from a significant artificial intelligence partner. The software maker’s market value has increased by 1.12% per day to approximately $2.68 trillion.

All of the main American indexes saw gains for the day; the S&P 500 saw its seventh consecutive increase, while Microsoft posted its eighth. Not since January 2021 had the stock seen such a run.

OpenAI, Microsoft’s strategic AI partner, revealed a number of updates on Monday at an event in San Francisco, including plans to lower prices and enable users to create personalized ChatGPT chatbots. Attending the event was Microsoft CEO Satya Nadella, who underlined that programmers using OpenAI’s tools could launch their apps swiftly by using Microsoft’s Azure cloud infrastructure.

Microsoft has invested a reported $13 billion in OpenAI, which has granted Microsoft an exclusive license on OpenAI’s GPT-4 large language model that can generate human-like prose in response to a few words of text. Microsoft last week announced the release of an assistant in Windows 11 and an AI add-on for its Office productivity app subscriptions, both of which use OpenAI models.

In a note sent to clients on Monday, UBS analysts under Karl Keirstead stated, “What is good for OpenAI is good for Azure in our view.” “OpenAI may use Azure more frequently and benefit Microsoft somewhat if it is actively encouraging developers to create apps with ChatGPT/GPT-4, which will reduce costs and boost model performance.” The stock of Microsoft has a buy rating from the analysts.

With a buy recommendation, Oppenheimer analysts stated that OpenAI’s price updates validate its position as the industry leader.

Microsoft will benefit from OpenAI’s success in a “mutually synergistic” way, they wrote. Microsoft identified OpenAI as its “strategic partner” in artificial intelligence in an October regulatory filing.

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