In a recent announcement, Microsoft is reportedly planning to invest an additional $10 billion into OpenAI, a startup specializing in artificial intelligence (AI) research and development. According to tech analyst Brent Thill of Jeffries, this investment won’t help Microsoft rival Google in the search market but will instead be used to improve their existing productivity tools.
Benefits for Microsoft
Thill believes that this move will pay off for Microsoft in the long-term by improving their productivity and AI-infused tools such as Powerpoint and Outlook. He also suggests that users could use these tools to self-populate relevant information with just one update. Additionally, he notes that other companies like Adobe have similar AI-powered products so Microsoft isn’t alone in this endeavor. However, he doesn’t think OpenAI will be used for consumer-facing applications anytime soon.
Financial Implications
From a financial standpoint, Thill believes that Microsoft should focus on what they’re good at and stick to enhancing their enterprise software rather than delving into new markets – citing the Nokia acquisition as an example of when it hasn’t worked out for them. He states that OpenAI’s technology could be seen as a “call option” for Microsoft and while there are no guarantees it will work out well, it is likely to help improve search capabilities and make applications smarter over time.
Conclusion
Overall, while investing $10 billion into OpenAI may not help Microsoft rival Google in the search market right away, it could give them an edge when it comes to productivity tools and furthering their AI capabilities in the future.
