Microsoft’s market cap briefly exceeded $3 trillion for the first time in its history on Wednesday, positioning it as the world’s second-largest company in terms of market value, following Apple Inc.
Since the beginning of the year, the tech giants have been competing for the top spot, with the iPhone maker temporarily capitulating its position to the Washington-based firm on January 12th.
Microsoft stocks climbed more than 1% and hit a record high of $405.15 as investors rallied around the company’s expansion into AI. According to CNBC, the shares are reportedly up more than 7% year to date. Apple became the first company to hit $3 trillion last year, as the company’s stock closed at $193.97 per share in June.
Microsoft boosts AI investment
Earlier this month, Microsoft announced the launch of its new premium subscription Copilot Pro, and the expansion of its Copilot for Microsoft 365 offerings to businesses of all sizes. These developments represent a significant step in commitment to integrating advanced AI capabilities into everyday work and personal life.
The company is also building its own custom AI chip that can be used to train large language models in a bid to reduce costs and reduce reliance on Nvidia, the leading AI chip supplier.
Supported by its investment in OpenAI, the maker of ChatGPT, it is widely regarded as a frontrunner in the competition for supremacy in generative AI, alongside others such as Alphabet, Amazon, Oracle, and Meta.
However, there have been repercussions. Both the UK’s Competition and Markets Authority and the European Commission are examining whether Microsoft’s $13 billion investment into OpenAI is reviewable under the EU merger regulation rules.
“The European Commission is checking whether Microsoft’s investment in OpenAI might be reviewable under the EU Merger Regulation,” the commission said in a statement on January 9th.
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The post “Microsoft surpasses $3 trillion market cap as it advances in AI” by Suswati Basu was published on 01/24/2024 by readwrite.com