Microsoft shares reached a record high this week pushing the company to a market valuation of $2.59tn, as artificial intelligence (AI) continues to be the hottest technology of the present and near-future.
Tech giant Microsoft, which invested $10bn in OpenAI at the beginning of the year, has been releasing constant AI updates to its services.
ChatGPT, OpenAI’s smash-hit chatbot, has received a range of updates to improve its power and efficiency.
Most recently, a new feature called “function calling” allows users to describe a programming function to the chatbot and have it write a piece of code to make it happen.
Microsoft’s shares rose 3.2% to $348.10 per share on Thursday. The stock is up 45% in the year to date.
Amy Hood, Microsoft’s finance chief, said on Monday that its “next-generation AI business will be the fastest-growing $10bn business in our history.”
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Microsoft has generated around $208 billion in total revenue over the past four quarters.
The news comes as major tech companies continue to rush to embed their own version of AI into their products and features.
In a battle to outplay its rival Google, US-based Microsoft has been integrating OpenAI tools into its Bing search engine and incorporating parts into its Windows operating system.
The news of Microsoft’s shares reaching a record high follows a dramatic fall in the value of AI deals in 2022.
The total value of deals made in the AI market totalled $72.9bn in 2022, falling from a $127.2bn peak in 2021.
AI deals have been growing steadily over the decade, growing from a total of just $1.6bn in 2013.