Microsoft Is 'Firmly In Pole Position' In Generative AI Race, Says Bullish Morgan Stanley Analyst

Microsoft Corp MSFT has been grabbing headlines after the launch of its new AI service, Copilot.

The higher-than-expected pricing of Copilot underscores the “compelling value proposition to customers” and lends upside to Copilot’s contribution to the model ahead, according to Morgan Stanley.

The Microsoft Analyst: Keith Weiss maintained an Overweight rating and price target of $415 on the stock.

The Microsoft Thesis: Copilot will cost $30 per user per month for commercial customers of Microsoft 365 E3, E5, Business Standard and Business Premium, Weiss said in the note.

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The timing of the broader availability of Copilot is not yet clear, he added.

Bing Chat enterprise will be available “as a stand-alone offering for $5/user/month and accessible from Windows Copilot,” the analyst wrote.

In other moves, Microsoft has inked an expanded partnership with Meta Platforms Inc META for the Llama 2 family of LLMs on Azure and Windows, and has scheduled the launch of power automate process mining for Aug. 1, Weiss stated.

“Firmly in the pole position in the GenAI race, Microsoft remains our top pick,” he further said.

MSFT Price Action: Shares of Microsoft were down 0.38% to $358.11 at the time of publication Wednesday.

Now Read: How To Earn $500 A Month From Microsoft Stock As Tech Giant Launches New AI Service

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