Article said that as Microsoft charts a pivotal course in its association with OpenAI, the tech giant explores strategic pathways to fortify its artificial intelligence pursuits, particularly after Sam Altman's shift to Microsoft from OpenAI. This move aims to amplify AI capabilities and sustain the growth of its ChatGPT user base. Speculation arose regarding Altman's replacement at OpenAI, hinting at Dario Amodei, CEO of Anthropic, as a potential candidate. However, Amodei dispelled these rumours, refuting any intentions to assume the role of CEO or engage in a merger with OpenAI. Amid the leadership transition, concerns from investors surfaced, potentially leading to legal challenges against OpenAI's board. Satya Nadella, Microsoft's CEO, viewed Altman's move as a necessary step toward governance reform at OpenAI, assuring that it doesn't imperil their long-term goals. Nadella also hinted at the possibility of OpenAI staff joining Microsoft's expansive AI division.
So far, amazing news for both mentioned companies. But it did not stop there. Morgan Stanley analysts highlighted Microsoft's intricate situation concerning OpenAI, underscoring the necessity to address internal leadership conflicts or potentially integrate OpenAI's Research Lab into Microsoft. The primary focus revolves around advancing research in Artificial General Intelligence while ensuring the expansion of the ChatGPT subscriber base. Microsoft's developmental initiatives encompass Azure OpenAI Services and the creation of products utilizing GPT technology. Despite a substantial rally, Wall Street analysts maintain a Strong Buy consensus on Microsoft stock, projecting an average price target that indicates over 10% growth potential.[1]
Stocks are currently near the all-time high, as the price for a stock is 373 USD.* If the predictions of analysts will come true, then there I see a very big potential for growth. Based on the news, I have decided to invest into Microsoft, regardless of its high price.
Movement of Microsoft in the last five years. (Source: Investing) *
* Past performance is no guarantee of future results.
[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.