OpenAI, which is backed by tech giant Microsoft (NASDAQ: MSFT), has introduced DALL-E 3, its latest text-to-image AI tool. This tool is currently in research preview and will be available to ChatGPT Plus and Enterprise customers in October.
DALL-E 3, natively built on ChatGPT, demonstrates an enhanced understanding of nuanced text inputs, ensuring generated images closely align with user-provided descriptions. This is better than the previous versions of DALL-E. Another change to the new version of DALL-E is that the company has brought in safeguards to prevent the generation of violent, adult, or hateful content, including declines for requests mentioning public figures by name. Safety improvements address potential biases and misinformation, with ongoing research to identify AI-generated images.
OpenAI is facing rising competition from Alibaba (BABA), Midjourney, and Stability AI when it comes to generative AI. It is also facing legal challenges related to copyright infringement from authors like George R.R. Martin and John Grisham.
What is the Target Price for Microsoft?
Overall, analysts are bullish on MSFT stock with a Strong Buy consensus rating based on 30 Buys, three Holds, and one Sell. The analysts have a consensus price target of $392.41 on the stock, implying an upside potential of 21.9% at current levels.