Microsoft: AI Focus Driving bid to be Most Valuable Company

With Microsoft Poised to Overtake Apple as the World’s Most Valuable Company, We Explore Its Offerings and Some of the Reasons Behind Its Recent Success

Microsoft is close to regaining the title of the most valuable company in the United States from Apple, with slowing iPhone demand and Microsoft’s recent AI announcements closing the gap between the two companies to US$100bn.

Apple has been the US’ most valuable company since July 2022, recently reaching a landmark US$3tn valuation.

But the company’s poor recent stock performance, in combination with a number of AI-focused announcements from Microsoft, has closed the gap significantly, with about US$177bn in market value erased so far in January 2024 according to Bloomberg data.

Apple’s stock decline has been attributed to competitive pressures from Chinese rivals, particularly Huawei, with Reuters reporting that its iPhone sales in China had dropped by 30% in the first week of 2024.

Microsoft: Focus on consumer and enterprise AI, and investment in OpenAI

With a Microsoft-sponsored study by IDC projecting that generative AI will add nearly US$10tn to global GDP over the next 10 years, Microsoft has embraced the Gen AI revolution: building it into its consumer and enterprise offerings.

The company’s Copilot, an AI assistant feature for Microsoft 365 applications and services, is built into its Windows 11 operating system. Described as an ‘AI assistant at work,’ Copilot builds on Bing Chat Enterprise, but includes enterprise-grade security, privacy, compliance and responsible AI to ensure all data processing happens inside the user’s Microsoft 365 space.

Microsoft also has a well known relationship with OpenAI – reportedly owning 49% of the ChatGPT creator, and announcing a ‘multibillion dollar’ investment in the AI leader in January 2023.

And in October 2023 Microsoft closed its largest acquisition ever, exceeding the US$26bn it paid to acquire LinkedIn in 2016 and the US$7.5bn it reportedly paid to acquire Bethesda in 2021, as UK regulators approved its bid to purchase Activision Blizzard. The deal means Microsoft is now the world’s third-largest gaming company by revenue, behind market leader Tencent and Sony.

******

Make sure you check out the latest edition of Technology Magazine and also sign up to our global conference series - Tech & AI LIVE 2024

******

Technology Magazine is a BizClik brand

Share
Share

Featured Articles

Dell Technologies: Powering Reliable Global Connectivity

Dell Technologies is announcing new solutions to help communications and service providers (CSPs), so that their systems are faster and more flexible

MWC Barcelona 2024: Unveiling the Future of Technology

Technology Magazine is live at MWC Barcelona 2024 this week, where global industry leaders come to reveal cutting-edge innovations in connectivity

Google Gemma: An AI Model Small Enough to Run on a Laptop

Tech giant Google, with Google DeepMind, has launched its latest AI model Gemma which it says achieves best-in-class performance for its size

Why Tech Leaders Should Attend Sustainability LIVE: Net Zero

Digital Transformation

OpenText Report: IT at Forefront of Sustainability Efforts

Digital Transformation

‘Magnificent Seven’ Tech Companies Driving Forward With AI

AI & Machine Learning