MSFT Stock: How Big Artificial Intelligence Investment Could Threaten GOOGL Stock

microsoft (MSFT) is in talks to increase its investment in artificial intelligence startup OpenAI by $10 billion to make the Bing search engine a formidable competitor. alphabetof (GOOGL) Google, according to the report. MSFT’s share price rose in the report, while GOOGL’s share price fell.


Microsoft invested $1 billion in OpenAI in 2019. Microsoft’s investment will be part of a new funding round for AI startups.

OpenAI has developed a “generative AI” software tool that uses Microsoft’s Azure cloud computing units to create new content from large public data sets. This startup uses machine learning techniques to train AI models. Machine learning software devours text, images, voice recordings, programming code, and other forms of data.

OpenAI’s technologies include ChatGPT, a chatbot that could make Microsoft Bing a powerful challenger to Google’s internet search, and image generator Dall-E2.

MSFT Stocks: Boosting Bing?

Microsoft has integrated the Dall-E2 tool into its design software. Other AI tools can be incorporated into the email platform Outlook and office productivity tools such as Word.

The software giant can also integrate ChatGPT into its Bing internet search app. According to Statista, the Bing search engine has almost 9% of the market, while Google has about 84%.

ChatGPT provides answers to questions and generates documentation, while Google’s search tool is designed to provide links to websites and advertisements.

In a recent report, Oppenheimer analyst Tim Horan said a partnership with OpenAI could boost Microsoft’s Azure cloud business.

“We expect dozens of new services from OpenAI/ChatGPT, leveraging Azure’s robust infrastructure in virtual cycles,” said Horan. “These services include true digital assistants, AI-based legal, accounting, financial services, etc. This consumer AI will be used in enterprises (applications) in equally amazing ways. .”

GOOGL Stocks: Big R&D Budgets for Artificial Intelligence

MSFT shares rose 0.5% to 228.15 in today’s stock market morning trading. GOOGL’s share price fell 0.9% to 87.21.

Meanwhile, Google’s cloud computing unit has partnered with OpenAI rival startup Cohere.

Google also owns DeepMind Technologies, an AI lab based in the UK. Google has developed a generative AI tool called Language Models for Dialog Applications, known as LaMDA, that uses technology similar to OpenAI.

According to a Bank of America report, Google has invested about $120 billion in artificial intelligence and cloud computing since 2016.

Follow Reinhard Krause on Twitter @reinhardtk_tech See the latest in 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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