According to Wedbush’s Dan Ives, Microsoft is leading the pack in the race for artificial intelligence (AI) with their recent integration of ChatGPT into Bing. The potential for Microsoft’s AI capabilities is vast, with a possible 15% jump in stock prices under a bull-case scenario.
AI Integration with Bing
Microsoft’s extended partnership with OpenAI, the creator of ChatGPT, included a $10 billion investment in January 2021, following earlier investments in 2019 and 2021. Bing has already integrated some components of ChatGPT-like technology into its search engine, and there are plans for more consumer-facing AI products in the future.
Monetization Opportunity with ChatGPT
Ives believes that the AI story and ChatGPT’s monetization opportunity could add roughly $20 per share to the MSFT sum of the parts story, which he expects to play out over the next 12 to 18 months. While there may be issues with Bing and ChatGPT, it is clear that Microsoft now has an opportunity to expand its AI capabilities into several areas around the consumer and enterprise ecosystem.
AI Big Tech Battle Underway
Ives estimated that the “Game of Thrones” AI race represents an $800 billion market opportunity over the next five years in areas such as search, cloud, data analytics, cybersecurity, and machine learning. Every slice of market share in search that Bing can take from Google will translate to billions of advertising dollars for Microsoft.
Rivals such as Google are also stepping up their efforts to capitalize on the AI race, with the announcement of their own chatbot, Bard, earlier this month. With Apple, Meta, and others yet to reveal their next poker moves in this AI Big Tech battle underway, the industry is eagerly awaiting what’s next.
Microsoft’s integration of ChatGPT into Bing is positioning the company as a leader in the AI space, with significant potential for monetization and stock price growth. The AI race represents a massive market opportunity, and as the battle for AI dominance continues, Microsoft and its rivals will undoubtedly push the limits of what’s possible with this technology.