Microsoft Becomes 2nd Company To Join $3 Trillion Club.
Microsoft has joined Apple as a three trillion dollar company, with its shares up 1.31 percent at $404. This is largely due to Microsoft’s significant investment in artificial intelligence, particularly through a $13 billion partnership with OpenAI, the creator of ChatGPT. Since the launch of ChatGPT in November 2022, Microsoft’s shares have increased by about 67 percent. Despite Apple reaching the $3 trillion market capitalization mark first, Microsoft briefly overtook Apple as the biggest company on the markets earlier this month. Microsoft’s AI-driven products, such as those integrated with Bing and Copilot, have been key to this success.
New York:
Microsoft joined Apple on Wednesday as a three trillion dollar company, as its big bet on artificial intelligence continued to impress Wall Street.
Now second to Apple as the world’s biggest company by market capitalization, Microsoft’s shares were up 1.31 percent at $404.
Apple remains narrowly in first place at $3.02 trillion after reaching the $3 trillion market capitalization mark for the first time in January 2022.
But it has fallen below the milestone, even briefly losing the pole position as biggest company on the markets when Microsoft briefly overtook the iPhone maker earlier this month.
Microsoft more than any other tech giant is riding the wave of excitement over AI.
The Redmond, Washington-based group has a major partnership with OpenAI, creator of ChatGPT, that is reportedly worth $13 billion.
Since the arrival of ChatGPT, Microsoft has launched several products enabling companies and individuals to use the capabilities of generative AI, notably via its Bing search engine and Copilot virtual assistant.
Since the launch of ChatGPT in early November 2022, Microsoft shares have gained some 67 percent, with Apple’s up by about 40 percent.
Microsoft and Apple have had a complex relationship over the years, marked by both competition and collaboration. Here are some key points:
- In 1997, Microsoft agreed to invest $150 million in Apple stock. The companies agreed to settle all outstanding litigation and cross-license patents, while making Microsoft Office available for the Macintosh.
- More recently, in 2022, Microsoft announced a range of Apple services would soon be available on its PCs. This was part of a new software launch where Apple joined other tech companies in a new alliance.
- Despite their collaborations, Microsoft and Apple continue to compete in several areas, including market capitalization. As of 2024, Microsoft is predicted to overtake Apple as the world’s largest company.
It’s important to note that while Microsoft has a major partnership with OpenAI, this is separate from its collaborations with Apple. The OpenAI partnership, reportedly worth $13 billion, has been a significant factor in Microsoft’s recent growth.
Microsoft’s journey to becoming a three trillion dollar company is a testament to its strategic investments and innovations, particularly in the field of artificial intelligence (AI). The company, based in Redmond, Washington, has been at the forefront of the tech industry’s AI revolution, riding the wave of excitement over AI more than any other tech giant.
Microsoft’s big bet on AI began with a major partnership with OpenAI, the creator of ChatGPT, which is reportedly worth $13 billion. This partnership has been instrumental in Microsoft’s growth, as it has enabled the company to leverage the capabilities of generative AI in its products and services.
One of the key products that emerged from this partnership is ChatGPT. Since its launch in early November 2022, Microsoft has seen a significant increase in its share value, with shares gaining some 67 percent. This growth rate outpaces that of Apple, which saw an increase of about 40 percent during the same period.
Microsoft’s AI-driven products are not limited to ChatGPT. The company has launched several other products that enable companies and individuals to harness the power of generative AI. Notably, these capabilities have been integrated into Microsoft’s Bing search engine and Copilot virtual assistant, providing users with more intelligent and personalized experiences.
The success of Microsoft’s AI initiatives is reflected in its market capitalization. On Wednesday, Microsoft joined Apple as a three trillion dollar company, with its shares up 1.31 percent at $404. This achievement places Microsoft second to Apple as the world’s biggest company by market capitalization.
However, Microsoft’s market position has fluctuated. Earlier this month, it briefly overtook Apple as the biggest company on the markets, even though Apple was the first to reach the $3 trillion market capitalization mark in January 2022. Currently, Apple remains narrowly in first place at $3.02 trillion.
Despite these fluctuations, Microsoft’s growth trajectory remains strong. Its continued investment in AI and its successful partnership with OpenAI suggest that Microsoft is well-positioned to maintain its market position and continue its growth in the future.
In conclusion, Microsoft’s rise to a three trillion dollar company underscores the transformative potential of AI. Through strategic partnerships and innovative products, Microsoft has harnessed the power of AI to drive its growth and redefine the tech industry. As AI continues to evolve, it will be interesting to see how Microsoft leverages these advancements to further its mission and deliver value to its users.