Microsoft Strategizes Amid ChatGPT’s Rising Popularity

Key Points:

• Microsoft seeks control of AI narrative
• Blocking data from competitors
• Multi-billion investment in OpenAI
• MSFT stock rises 15% in early 2023

Microsoft is doing its best to control the AI narrative. AI is catching on like wildfire, thanks to the rise of a robot called ChatGPT. Big tech companies are muscling their way into the conversation, including Microsoft. But this tech giant is in a unique position for a couple of reasons. 

Playing Defense 

On one hand, Microsoft is attempting to block its data from competitors looking to harness its search engine for AI-powered products. Microsoft’s search engine Bing is at the center of this battle. 

According to reports, Microsoft has already reminded a couple of customers that harnessing the Bing search index for AI chatbots is a violation of contract terms. It’s threatened to revoke licenses if these customers don’t heed its warning. 

Microsoft has been scrambling to integrate AI into its flagship products including Bing and the Edge web browser to better compete in a changing market landscape. This is where the company plays offense, and it’s not alone. 

Going on Offense 

Microsoft and other tech leaders including Google and Amazon are also looking to AI to strengthen their cloud-based services. According to a separate report by the WSJ, tech majors are feverishly trying to associate their brands, such as Microsoft’s Azure, with their respective generative AI tech in an attempt to reinvigorate sales. 

They are playing catch-up while early-mover OpenAI is out front with the wildly popular ChatGPT app. However, Microsoft has an early-mover advantage over its competitors. While Google was asleep at the wheel, Microsoft poured multiple billions of dollars into startup wonder OpenAI, and investors have rewarded MSFT stock for it.  

For a tech bellwether, Microsoft’s stock has gained some solid ground in early 2023, rising 15% year-to-date.

It’s still the early days for AI chatbots. But if demand for ChatGPT is any indication, it’s going to be a  wild ride.