2023-12-28 20:54:00
Microsoft’s Stock Has Risen 58% in 2024 due to AI Craze
Microsoft’s stock has enjoyed a strong performance this year, rising 58% since the beginning of the year. The surge is attributed to the artificial intelligence craze, with the technology giant expected to continue its positive trend in 2024 due to the AI capabilities it possesses.
The extensive use of artificial intelligence and product offerings by Microsoft is predicted to help the company steal market share in cloud computing from competitors such as Alphabet and Amazon. Wall Street forecasts that more than 60% of Microsoft’s customer base will use AI for commercial purposes, bringing in an additional $25 billion for the company by 2025.
Microsoft has positioned itself as a leader in the field of artificial intelligence with investments of $10 billion in OpenAI, the company behind the popular chatbot, ChatGPT. The company’s search engine, Bing, also received access to the capabilities of the chatbot, and artificial intelligence-based tools are being integrated into various Microsoft products, including Outlook, Windows, and Office applications.
Additionally, Microsoft recently announced plans to raise prices for Office software packages that are sold with its Copilot service. The company is also working on developing customized processors that can handle the loads of running AI models, which will compete with those made by Nvidia.
Microsoft’s new Azure Maia AI accelerator, designed to run artificial intelligence applications, is slated to be launched in the company’s data centers early next year. The company is also developing a new general-purpose processor called Azure Cobalt, based on a design from Arm.
However, Microsoft’s advancements in AI have not come without challenges. The company was recently sued by The New York Times for using the newspaper’s content to train models without permission. The lawsuit claims that Microsoft’s AI models are using information available in Times articles to give answers to users, thus potentially diverting traffic from the Times website.
Despite the challenges, Microsoft remains optimistic about the future of AI. The company’s CEO, Satya Nadella, stated, “With Copilot, we’re making the AI era real for people and businesses everywhere. We’re rapidly infusing AI tools across all of our technologies and into every function and business process to drive productivity gains for our customers.”
Overall, Microsoft’s investments in AI and the continued development of AI-based technologies have positioned the company for continued success in the years to come.
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