With the stock expected to be among the most dominant next year, Microsoft (MSFT) has seen its $13 billion investment heralded as some of the “best money ever spent,” by some Wall Street analysts. Indeed, the company is set to be at the forefront of one of the tech sector’s most important developments.
Like many of its competitors, the company has not been shy about funneling funds to develop its AI capabilities. Driven by the ongoing AI boom within the stock market, it has placed a clear emphasis on its presence. Although they have openly admitted that the investment will dampen its profits, experts have touted the decision as having immense potential to pay off in a big way.
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Microsoft Investment Championed by JPMorgan as Stock Looks to Lead AI Sector
Just five years ago, Microsoft invested $1 billion into OpenAI. The startup was an artificial intelligence developer that was creating impressive language models to fuel generative AI products. There were skeptics, including co-founder Bill Gates, who believed that had long fallen behind in the race to develop the technology.
Little did they know, they had an inside track on what would be one of the tech industry’s greatest advancements. With firms like Intel (INTC) passing up on the investment, Microsoft saw the potential. Now, with even more money dedicated to the company, the prospects look all the more impressive.
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With its investments growing, Microsoft (MSFT) has now put $13 billion into the AI firm, with Wall Street championing the decision. Specifically, JPMorgan was among the loudest to heap praise on the move. “We think that Microsoft’s investment into OpenAI, which started years ago, could potentially prove to be some of the best money ever spent,” their analysts said.
OpenAI’s ChatGPT was the product that first set off the boom in AI demand. Now, it has become a key facet of Microsoft’s development. They are now the sole provider of cloud computing services to the company. That only enhances Microsoft Azure, which has developed into an industry leader.
Moreover, Microsoft has now been able to integrate the GPT technology into its products. Last year, they debuted Microsft 365 Copilat. The generative AI assistant has been adopted by 70% of Fortune 500 companies. These two aspects create a world in which MSFT stock skyrockets from its product’s continued and widespread adoption.