The day that so many have feared has arrived, and Microsoft-backed OpenAI (NASDAQ:MSFT) is now going Hollywood. A strike from the writers and actors together apparently wasn’t enough to blunt the advance of artificial intelligence into the field completely. As a result, Microsoft gained fractionally on the news.
OpenAI representatives are currently meeting with several Hollywood entities, including studios, executives, and agencies, to discuss future partnerships. Specifically, the Sora video generator is coming up quite a bit and attracting a lot of attention. While there wasn’t much word on which studios, executives, and agencies were involved, it was a fairly widely dispersed operation.
Sam Altman, OpenAI’s CEO, was at several Academy Awards parties, reports noted. The Sora system is sufficient to, according to OpenAI itself, create “…realistic and imaginative scenes from text instructions.” It can create scenes up to 60 seconds long, which means, theoretically, it could produce feature-length films by building on one minute at a time.
“Jobs Are Going to Be Lost”
While the latest contracts with the writers and actors may have something to say about this, there may ultimately be no stopping artificial intelligence’s advance into entertainment. Tyler Perry recently put plans to drop $800 million on a studio expansion on hold after getting a look at Sora and seeing what it could do. Perry noted, “I feel like everybody in the industry is running a hundred miles an hour to try and catch up, to try and put in guardrails.” He then delivered the starkest expression of Sora’s capabilities of all, noting, “Jobs are going to be lost.”
What Is the Target Price for Microsoft Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 31 Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. After a 54.02% rally in its share price over the past year, the average MSFT price target of $470.30 per share implies 9.6% upside potential.
