GPT boosts stock price to new highs! "Big winner" Microsoft: An investment that determines the future

Will the alliance with OpenAI help Microsoft rise to the top of the AI wave?

On November 7th, Microsoft announced on its official website that its Azure cloud service will synchronize a series of updates, including GPT-4 Turbo.

As a strategic partner of OpenAI, Microsoft's stock price rose by 0.7% on the 8th, hitting a new all-time high for the ninth consecutive day.

On November 6th, OpenAI held its first developer conference and announced more powerful and cost-effective new models, such as GPT-4 Turbo, personalized version of ChatGPT, and Assistant API.

Investors are optimistic about this conference because of its "fresh ideas". It is believed that OpenAI is getting closer to its main goal of creating AI superintelligence.

Satya Nadella, Chairman and CEO of Microsoft, appeared at the developer conference and emphasized that developers who use OpenAI tools to build applications can quickly enter the market by deploying their software on Microsoft's Azure cloud infrastructure.

Keeping up with OpenAI

As OpenAI announced a series of updates, Microsoft is also following suit.

First, they are synchronizing model iterations. On November 7th, Microsoft announced on its official website that they welcome all "new models" of generative AI models, including GPT-3.5 Turbo, DALL-E 3, and Whisper 3.

Regarding the launch of the latest version, GPT-4 Turbo, Microsoft stated that they will provide the GPT-4 Turbo model on the Azure cloud service provider by the end of this year, and they believe that this is in line with the standard practice of introducing new model innovations from OpenAI partners to Azure OpenAI services.

Secondly, in response to OpenAI's price reduction announcement, Microsoft stated that the pricing of Azure OpenAI services will be "on par with OpenAI's prices".

At the conference, OpenAI also launched a custom version of ChatGPT, which means that anyone can create a customized version of ChatGPT without coding skills. Microsoft will provide "in-depth ecosystem support" for this, and more details will be shared at the upcoming Microsoft Ignite conference next week.At the end of the statement, Microsoft stated that it will continue to seamlessly integrate OpenAI services into its existing ecosystem and infrastructure, providing comprehensive solutions for all enterprise needs.

OpenAI CEO Sam Altman also expressed his view on establishing a strong and productive partnership with Microsoft at the meeting:

"I believe we have the best partnership in the technology field."

The outcome of the bet is still uncertain, but Microsoft has a great chance of winning.

Betting on OpenAI may be Microsoft's most successful investment in recent years.

In 2019, Microsoft invested $1 billion in OpenAI to provide powerful server infrastructure for the development of large models. In 2021, Microsoft added another $2 billion in investment to OpenAI. Until December last year, OpenAI gained popularity with the chatbot ChatGPT, and Microsoft subsequently increased its investment by $10 billion in January this year.

Over the past five years, Microsoft has invested a total of $13 billion in OpenAI.

In order to compete for the future discourse power of AI, technology giants such as Microsoft, Google, and Amazon have been laying out and catching up. However, at present, Microsoft has a great chance of winning.

Because of the sweet taste of investing in the AI field, Microsoft has tasted the first bite.

According to the latest earnings report, Microsoft's "Intelligent Cloud" business (including Azure, GitHub, server products, enterprise, and cloud services) achieved a 19% YoY revenue growth in the third quarter. Azure's revenue growth rate returned to a high of 29%, ending a trend of continuous slowdown for seven consecutive quarters.

The cooperation with OpenAI has helped Microsoft successfully seize the initiative in the generative AI field. On the other hand, Microsoft Azure also provides large models from Meta and Hugging Face, further expanding its layout. Since the beginning of this year, Microsoft's stock price has continued to rise, with a cumulative increase of 51.6%, and its market value has reached $2.7 trillion.