Microsoft’s bet on AI is paying off

Article Excerpt

In January 2023, Microsoft increased its investment in OpenAI. That’s the start-up firm behind ChatGPT, which uses artificial intelligence (AI) software to interact with users in a conversational way and produce human-like written responses. The company has not yet revealed the size of this investment, but media reports suggest it was $10 billion. Since then, Microsoft stock has jumped 36% on the expectation the company will use this AI technology to greatly improve the performance of its Azure cloud computing platform and its Bing search engine. Microsoft also stands to gain from its upcoming acquisition of video game maker Activision Blizzard. The purchase should enhance the appeal of Microsoft’s Xbox console and online gaming business. The two firms recently modified some of the conditions of the takeover, which should help them secure the approval of competition regulators. MICROSOFT CORP. $327 is a buy for aggressive investors. The company (Nasdaq symbol MSFT; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 7.4 billion; Market cap: $2.4…