Microsoft (NASDAQ:MSFT) backed OpenAI continues to up the artificial intelligence game. The startup’s popular AI chatbot, ChatGPT, can now scour the internet to provide current information to users.
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Until recently, ChatGPT was limited to data available prior to September 2021. While the browsing capability is presently available for Plus and Enterprise users, OpenAI plans to expand access to all users soon.
OpenAI has already given ChatGPT the ability to “see, hear, and talk” spoken words and understand images. The new capability suddenly expands the use cases for ChatGPT even further.
The vast amounts of computing power needed to keep its AI apparatus churning has led to rising costs for OpenAI. The startup is now seeking to sell shares of existing employees at an eye-popping valuation between $80 and $90 billion.
Other tech giants are racing to catch up. Alibaba (NYSE:BABA) has introduced two AI models that can comprehend images and execute complex conversations. Meta Platforms (NASDAQ:META) has launched Code Llama and aims to release an open-source AI model that can take on ChatGPT.
Interestingly, Microsoft, which owns nearly 49% of OpenAI, is planning to build its own AI models. Looking to limit costs, the company has put in place an army of 1,500 researchers to build a conversational AI.
What Is the Target Price for MSFT?
Overall, the Street has a consensus price target of $397.19 on Microsoft, alongside a Strong Buy consensus rating. This implies a 27% potential upside in the stock, on top of a 32% price gain over the past year.
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