According to Oppenheimer, Microsoft is the Best Bet for Investing in AI

Microsoft’s New Premium ChatGPT Service for Enterprises Could Make Waves

Microsoft is expected to announce a premium private ChatGPT service for enterprises that could cost as much as ten times more than OpenAI’s public paid service. This move is likely to widen the gap between Microsoft and its rivals in the AI arms race. While its competitors, namely AWS and Google Cloud Platform, have had setbacks, Microsoft’s FY24E Azure growth is expected to increase by 24%, thereby further increasing its dominance in the hyperscaler cloud market.

The Emergence of AI

As Oppenheimer analyst Timothy Horan believes, AI is turning out to be the “most consequential technological breakthrough since the Internet and Mobile.” Microsoft has invested in OpenAI, the company behind ChatGPT, and introduced the tech in its search engine, Bing, making it a leader in the field.

What Does the Premium Private ChatGPT Service Entail?

The private ChatGPT service for enterprises will not only protect businesses operating in segments such as banking or health care from data leaks or regulatory compliance worries but also broaden Microsoft’s lead over its rivals.

How Does the Market Look?

Microsoft’s Azure grew by $914M in calendar 1Q23, whereas AWS shrank by $24M during the same period, and GCP (Google Cloud Platform) rose by $149M, albeit with accounting changes. This suggests that 1Q23 marked an inflection point for Azure OpenAI and related halo effects.

Investor Opinion

Oppenheimer reiterated an Outperform rating with a $330 price target, making it attractive for investment. Wall Street seems to be backing Microsoft, with the stock’s Strong Buy consensus rating based on 30 Buys, 3 Holds, and 1 Sell.

In conclusion, Microsoft’s new premium private ChatGPT service is expected to widen its lead over its rivals and make a significant contribution to the AI market.

Editor Notes

Microsoft’s innovation in the AI field is a positive step towards making technology more efficient. GPT News Room applauds Microsoft for its efforts in creating a more secure and reliable platform for businesses. To learn more about AI technology and breakthroughs, visit GPT News Room at https://gptnewsroom.com.

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