According to recent data, Microsoft has surpassed Apple to become the most valuable public company, with a market value of $2.88 trillion compared to Apple’s $2.86 trillion. One of the significant factors contributing to Microsoft’s success is its strong investment in artificial intelligence (AI).
Microsoft’s investments in AI have led to a remarkable increase in its market value, adding approximately $1 trillion in the past year. This surge in value is primarily attributed to the growing fascination with generative AI, which is gaining prominence in various industries, including Hollywood.
Notably, Microsoft holds an ownership stake in OpenAI, the company behind ChatGPT, a well-known AI language model. With a $10 billion investment last year, Microsoft secured a substantial portion of the profits generated by OpenAI’s for-profit division. This move has captivated the market’s attention, with AI stocks witnessing a surge. For instance, chipmaker Nvidia experienced a threefold increase in its stock value due to its association with the AI revolution.
Apart from its partnership with OpenAI, Microsoft has also made significant strides in building its own AI infrastructure. The company has leveraged its 7-year-old investment firm, M12, to make strategic investments in the AI sector. Michael Stewart, a partner at M12, emphasized that Microsoft’s interest in generative AI predated its recent surge in popularity.
The focus on AI is especially crucial for Microsoft as it sees an opportunity to narrow the gap between itself and Google in search revenue. While Google raked in approximately $43 billion in search revenue in 2023, Microsoft’s revenue in this area was only around $3.2 billion. By expanding its AI capabilities, Microsoft aims to compete more effectively in the search market.
In contrast, Apple has not fully established its presence in AI. With concerns about its fourth-quarter results and potential weaknesses in its flagship iPhone, Apple’s stock has experienced a slight decline of around 4% in recent weeks.
In conclusion, Microsoft’s strategic investments in AI have propelled its market value, surpassing that of Apple. With its strong AI assets and partnerships, Microsoft is well-positioned to capitalize on the growing potential of AI technologies across various industries.
The source of the article is from the blog qhubo.com.ni