The launch of OpenAI’s ChatGPT in November 2022 was not only a significant milestone in the field of Artificial Intelligence (AI), but it may also have a substantial impact on the long-term value of both Microsoft and Alphabet (Google) stocks. Microsoft has a strong partnership with OpenAI, both in terms of investment and collaboration, and there is a good chance that Microsoft’s search engine, Bing, will utilize OpenAI’s GPT solution, which is the basis for the current ChatGPT. This could mark a new era in internet search and determine which search engine will be more widely used in the coming months and years.
From a financial standpoint, it may be crucial to examine how these developments will affect the valuation and stock prices of Microsoft and Alphabet. This presents a significant opportunity for Microsoft to increase its market share for Bing and incorporate OpenAI’s GPT into many of its products. Meanwhile, Google has a long history in the AI industry, such as its TensorFlow framework, and it could easily integrate its LaMDA conversation technology into its search engine. Therefore, I expect the stock prices of both Microsoft and Google to rise in 2023.
Disclaimer: I have a long position in the stocks of both Microsoft and Alphabet.
