Microsoft Corp MSFT CEO Satya Nadella emphasized his contentment with the company’s partnership with ChatGPT parent OpenAI, expressing no desire for greater control despite Microsoft being the largest investor with a $13 billion investment.
Nadella stated that Microsoft values stability in its partnership with OpenAI, irrespective of its organizational structure, whether it’s a nonprofit or a capped-profit entity in an interview at Bloomberg House in Davos.
He highlighted that Microsoft is not seeking a board seat at OpenAI, even after the company gained a non-voting board observer role following OpenAI CEO Sam Altman’s brief ouster and return.
Under Nadella’s leadership, Microsoft has integrated the technology behind ChatGPT into its entire product line, identifying it as the first AI product with broad relatability.
However, Nadella pointed out that Microsoft’s dependence on OpenAI is balanced, as OpenAI relies on Microsoft for essential technology components.
Moreover, Microsoft independently develops its AI programs, maintaining control over its AI destiny.
Nadella sees opportunities for Microsoft to engage in hardware development that leverages AI advancements as AI revolutionizes interfaces and app models.
Despite recently surpassing Apple Inc AAPL as the most valuable company by market capitalization, Nadella remains unfazed by this achievement, considering it a “lagging indicator.”
He stresses the importance of focusing on future innovations rather than fixating on stock prices, especially in the tech industry.
Shortly after his firing from OpenAI, Microsoft’s recruitment of Altman has drawn attention to the company’s strategic positioning in the AI sector.
Analysts from Piper Sandler and Mizuho have reiterated their positive ratings on Microsoft. They view hiring Altman and OpenAI co-founder Greg Brockman as a significant step towards Microsoft controlling its AI future and building a comprehensive AI stack.
The move is seen in the context of the rapid adoption of ChatGPT, signaling a generative AI revolution.
In 2023, Microsoft announced a further multiyear commitment of $10 billion to OpenAI, adding to its initial $1 billion investment in 2019 and subsequent reinvestment in 2021.
Microsoft Corp MSFT CEO Satya Nadella emphasized his contentment with the company’s partnership with ChatGPT parent OpenAI, expressing no desire for greater control despite Microsoft being the largest investor with a $13 billion investment.
Nadella stated that Microsoft values stability in its partnership with OpenAI, irrespective of its organizational structure, whether it’s a nonprofit or a capped-profit entity in an interview at Bloomberg House in Davos.
He highlighted that Microsoft is not seeking a board seat at OpenAI, even after the company gained a non-voting board observer role following OpenAI CEO Sam Altman’s brief ouster and return.
Under Nadella’s leadership, Microsoft has integrated the technology behind ChatGPT into its entire product line, identifying it as the first AI product with broad relatability. However, Nadella pointed out that Microsoft’s dependence on OpenAI is balanced, as OpenAI relies on Microsoft for essential technology components. Moreover, Microsoft independently develops its AI programs, maintaining control over its AI destiny.
Nadella sees opportunities for Microsoft to engage in hardware development that leverages AI advancements as AI revolutionizes interfaces and app models.
Despite recently surpassing Apple Inc AAPL as the most valuable company by market capitalization, Nadella remains unfazed by this achievement, considering it a “lagging indicator.”
He stresses the importance of focusing on future innovations rather than fixating on stock prices, especially in the tech industry.
Shortly after his firing from OpenAI, Microsoft’s recruitment of Altman has drawn attention to the company’s strategic positioning in the AI sector.
Analysts from Piper Sandler and Mizuho have reiterated their positive ratings on Microsoft. They view hiring Altman and OpenAI co-founder Greg Brockman as a significant step towards Microsoft controlling its AI future and building a comprehensive AI stack. The move is seen in the context of the rapid adoption of ChatGPT, signaling a generative AI revolution.
In 2023, Microsoft announced a further multiyear commitment of $10 billion to OpenAI, adding to its initial $1 billion investment in 2019 and subsequent reinvestment in 2021.
The stock gained 62% last year, outperforming the broader index Invesco QQQ Trust, Series 1 QQQ at over 45%.
Price Action: MSFT shares traded higher by 0.60% at $390.80 premarket on the last check Tuesday.
Also Read: Microsoft President Makes Startling Revelations on Arrival of Advanced AI
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Microsoft and OpenAI. Photo via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
