Microsoft, a technology giant, has once again hit headlines in recent days, but this time for its skyrocketing valuation. It has recently been announced that Microsoft’s market capitalization has reached north of $3 trillion — a new record for the company — and the cause of this surge is largely attributed to the impact of Artificial Intelligence (AI). AI has been adopted by a number of corporations as a means of modernizing their services and giving them a competitive edge. Microsoft is no different and has been leading the charge in the AI segment. It has seen a massive increase in its stock values due to investments in its AI-based products and services.

Microsoft’s development of a range of AI-focused digital services, such as Azure, has been driving its value upwards. Azure provides a cloud platform to facilitate the development of AI-enabled products and services. This platform has become popular with corporations owing to its high reliability and flexibility. Companies looking to develop or deploy AI applications are increasingly relying on Azure. This has given Microsoft an edge over its competitors and boosted its valuation.

In addition, Microsoft’s AI-based products, such as Office 365, have also helped support their profitability. Office 365 is an AI platform that drastically reduces the cost and time of carrying out routine tasks and ensures more accurate documents. The use of such products is on the rise with businesses and even educational institutions. This has resulted in major profits for Microsoft and has been pushing its stock values to record highs.

Furthermore, Microsoft has also been investing heavily in AI research and development. It recently announced that it will be teaming up with the New York Institute of Technology and the MIT-IBM Watson AI Lab to build an environment for accelerating research in AI. Such endeavors are expected to further increase the value of the company as new AI-based products and services are developed and deployed. Overall, it is clear that Microsoft’s ever-growing investments in AI have been driving its valuation to record highs. Its development of Azure, Office 365, and its research projects have been a major contributor to its growth and profits. As Microsoft and its competitors continue to expand their AI offerings, it can be anticipated that their valuation will remain high.

Microsoft’s investment into OpenAI has been a major team player in helping its share price value. When Microsoft announced a $10 billion investment into OpenAI, its stock soared and has continued to rise. Microsoft is a major driver of innovation, and with OpenAI the tech giant is driving a suite of cloud and artificial intelligence services. OpenAI is an artificial intelligence research company established in 2015, and Microsoft’s investment is its first outside funding. OpenAI works in areas such as machine learning and robotics to develop projects such as cutting-edge natural language processing and robotics applications.

Microsoft’s stock has risen significantly since their investment into OpenAI. As of March 2021, Microsoft shares have jumped 52% since July of 2019 when OpenAI became part of the Microsoft portfolio. This significant jump in the share price can be attributed to the investments that Microsoft is making into OpenAI. Microsoft and OpenAI are developing and deploying cutting-edge services, including artificial intelligence and machine learning applications, to compete in the growing cloud and AI market.

The partnership between Microsoft and OpenAI is already having a big impact, with Microsoft announcing that its Azure AI platform will get exclusive access to the compute power and cutting-edge AI applications developed by OpenAI. This will increase Microsoft’s competitive edge in the AI and cloud market and benefits Microsoft shareholders. Microsoft’s investment into OpenAI is paying off as the stock price continues to rise. OpenAI is a major asset to Microsoft, helping to better position itself in the AI and cloud market. As OpenAI continues to develop new technologies and applications, Microsoft’s stock should continue to benefit from the partnership.