Microsoft Announces ‘Third Phase Investment In Open AI
Shares in US tech giant Microsoft are trading around 1% higher ahead of the US open today. The move comes on the back of yesterday’s announcement that the company will strengthen its partnership with ChatGPT maker Open AI via a new multibillion dollar investment deal. While the exact figure is yet to be disclosed, there have been reports of a $10 billion sum. The Microsoft blogost announcing the next stage of its involvement with Open AI, Microsoft outlined plans for additional supercomputer development as well as greater cloud-computing support for Open AI.
Microsoft’s desire to become heavily involved with this latest cutting edge technology represents a big opportunity for investors. With AI now seen as one of the fastest growth areas in tech, Microsoft’s early backing of a Open AI could pay big dividends down the line especially judging by the popularity of ChatGPT which is seeing massive cross-sector application.
Earnings Due Today
Looking ahead today, Microsoft is due to report Q4 earnings with Wall Street looking for EPS of $2.29 on revenues of $52.99 billion. While there are some warnings that the company might see a smaller profit margin, results in this area should keep the stock well bid especially on the back of this news.
Following the latest test of the 218.95 level, the stock has since turned higher again and is now testing the 244.95 region. This is a key pivot for price, marking the midway point of the range between current lows and the 265.55 level. If price can break above here, focus turns to a test of the bearish trend line and the 265.55 level above.