Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizen Sancu for the clue delivery! Today, Microsoft's market capitalization has reached nearly $2.6 trillion, which is indeed a huge profit. OpenAI won the second place in the world, and the second wave came after the meta-universe.

This round of AI craze, let Microsoft make a lot of money!

Just today, Microsoft has successfully set an all-time high with a market capitalization of nearly $2.6 trillion.

Microsoft shares closed at a record level on Thursday because of optimism about the future of AI.

In 2021, taking advantage of the east wind of meta-universe, Microsoft's market capitalization rose all the way, exceeding 2.5 trillion, surpassing Apple to become the most valuable company in the world.

Now, at a time when the capital market is suffering from a cold winter and the global economy is depressed, Microsoft has once again made history by betting on OpenAI and "AI craze" with a market capitalization of close to 2.6 trillion.

Microsoft has become one of the biggest beneficiaries of the rise of large models such as ChatGPT and a series of products.

Taking off directly from the east wind of the big model, Microsoft's share price has reached an all-time high, and Microsoft's share price has risen 46% so far this year.

This is very much in line with the forecasts of JPMorgan analysts.

Previously, Microsoft executives had predicted that the AI outbreak would bring Microsoft's annual revenue to $10 billion.

According to Microsoft, the company is expected to earn $10 billion or more a year from developers who use the Azure cloud or OpenAI model.

Microsoft shares, which hit an all-time high in November 2021, closed at $348.10 on Thursday, surpassing the 21-year record of November.

In November last year, OpenAI released ChatGPT, which later set off a worldwide craze for AI models.

With its partnership with OpenAI, Microsoft has an exclusive license for the OpenAI model, including the most popular big language models such as GPT-4.

Now, OpenAI's big models are integrated into Bing search engines and even Windows operating systems.

At a press conference in February, Microsoft CEO Nadella said: this is an exciting moment for the technology community. In addition to the huge investment in OpenAI, Microsoft also provides the underlying computing power.

The most important thing for investors, of course, is what this means for Microsoft's earnings.

In the last four quarters, Microsoft's total revenue has been close to $208 billion.

In April, Amy Hood, Microsoft's chief financial officer, said he expected Azure cloud's fiscal growth in the fourth quarter to reach 26% to 27%, of which 1% came from AI services.

In a public discussion with Microsoft technology chief Kevin Scott on Monday, Hood provided more details, saying that "the next generation of artificial intelligence business will be the fastest growing $10 billion business in our history." "

Scott, the technical director, is also confident-"everyone wants to use our infrastructure, whether they want to train their own model, run the open source model, or need to call our API."

Now, analysts at JPMorgan Chase have raised the underlying price to $350 from $315.

Analysts with a comparable rating on Microsoft's stock buy wrote: "while Microsoft's cloud optimization wave has dragged down Azure's growth, its investments in Security, Teams, Power Apps and forward-looking OpenAI have planted long-term seeds for success. "

With Microsoft up 46% this year, the stock has recovered all its losses since 2022. At the time, a large number of investors pulled out of the technology industry in anticipation of rising interest rates and economic headwinds.

Cloud growth and the shrinking PC market shrouded Wall Street in pessimism throughout the last year.

The global AI boom triggered by ChatGPT has excited the market again. The Nasdaq is up 32% this year, twice as much as the s & p 500.

Firmly do not listen to OpenAI, Microsoft is the right bet? The model is bullshit? It doesn't matter. Recently, foreign media have reported that OpenAI has warned Microsoft, GPT and other AI models that there will be nonsense hallucinations, but Microsoft firmly refuses to listen and insists on going its own way in order to gain a head start in the AI war.

Now, Microsoft should have made the right bet.

Recently, foreign media have also revealed that, in fact, the relationship between Microsoft and its partner OpenAI is not as good as we think, and even a little awkward.

OpenAI warned Microsoft that it is dangerous to integrate these models into Bing without more training in its own technology, and Bing's chat robot Sydney is likely to talk nonsense, according to the Wall Street Journal.

But Microsoft chose to ignore OpenAI's warning.

'We can't do all the alignment in the lab, 'Microsoft CEO Nadella said in a recent interview. To bring the AI model into line with the world, you need to complete this process in the real world, not in simulation.

It is agreed that the whole product will be included in my home. Why did you send it in advance? And, according to sources, Microsoft executives were also dissatisfied with OpenAI's sudden early launch of ChatGPT last fall.

Microsoft was busy integrating OpenAI's technology into Bing, but OpenAI suddenly released the public test of ChatGPT in advance, which made the two partners instantly become competitors.

With the success of ChatGPT, some Microsoft employees are already worried that ChatGPT will steal the limelight from Bing.

Indeed, ChatGPT attracted the fastest-growing user base in history with more than 100 million monthly active users in two months, but New Bing, which was launched a month later, did not achieve a similar success as ChatGPT.

According to analytics firm YipitData, ChatGPT searches almost twice as many times a day as Bing searches.

Delicate relationship: partner and competitor Nadella was once asked why Microsoft should invest in OpenAI when it has been investing in its own big language model for decades.

Nadella, he found that OpenAI is pursuing the same thing as Microsoft, so instead of training five different basic models, it's better to work together.

But the relationship is much more complicated than it seems, according to the Wall Street Journal.

There is tension and confusion in Microsoft's internal AI team, who complain that they are getting less money and are frustrated by their inability to understand the inner workings of OpenAI technology, especially employees who need to integrate them into Microsoft products.

Another awkward reality is that the sales teams of OpenAI and Microsoft sometimes sell to the same customer. This drama scene is typical of infighting.

In spite of this, Nadella stressed in the interview that Microsoft is "betting" that OpenAI,OpenAI is also "betting" on Microsoft. Microsoft's investment in OpenAI is a "long-term and stable transaction".

Nadella announced last month that the Bing search engine would soon be integrated into ChatGPT.

What else did Microsoft do right besides betting on OpenAI? As early as 2015, AlphaGo defeated Lee se-dol to successfully break the circle of artificial intelligence.

Google has also become synonymous with the most advanced AI technology. Google is also the first to propose the core technology of ChatGPT, and a paper called "All you need is attention" points out the direction for the development of the big language model.

Back in 2022, Google engineers were kicked out of the house after revealing to the outside world that Google's AI chat robot, LaMDA, "may have a soul."

The main reason Google is so worried about bringing the immature AI technology to the public is that the biases and harmful information that may exist in AI chatbots will affect Google's existing products.

After Microsoft bet on OpenAI, Google, the former AI giant, became under dog and had no choice but to catch up.

"getting up early in the morning and catching up for an evening episode" is probably the best description of Google's performance in this AI arms race.

What on earth did Microsoft do right?

After the first appearance of ChatGPT, in July 2019, Microsoft made a strategic investment of $1 billion in OpenAI, while OpenAI made Microsoft's Azure as its exclusive cloud computing provider to jointly develop new features.

After the break of ChatGPT, Microsoft immediately switched to the working mode of startups, quickly announced that it would integrate ChatGPT into important products, including Bing, Office, and Teams, and Microsoft CEO Nadella officially declared war on Google at the New Bing launch.

Compared with Google's conservatism, Microsoft takes a very different attitude towards integrating AI technology.

Even though OpenAI has warned Microsoft that hastily integrating their technology could have a negative impact on Microsoft's own products.

Microsoft is still going all out to embrace AI.

With the release of a series of new products and new features, such as OpenAI GPT-4, Microsoft's share price is also rising.

It shows that the capital market is very optimistic about the future of "wolf nature Microsoft" under the blessing of OpenAI technology.

The last meta-universe event two years ago was when Microsoft announced at the end of 2021 that it would follow Meta into meta-universe.

At that time, the move made Microsoft's market capitalization exceed 2.5 trillion US dollars, surpassing Apple to become the largest listed company in the world.

Now, however, the frenzy of the metamosmos the year before last seems to have ceased this year.

Two years ago, Microsoft announced that it would launch metacosmos blockbuster product Mesh, which aims to create applications that allow people to collaborate remotely through AR / VR technology.

Now on Microsoft's website, it's just a simple introduction page.

It seems that in a short period of time, Mesh will only serve as a background function to provide technical support for Teams and HoloLens in an immersive VR environment, rather than as a separate application.

At this year's Build conference, the only thing related to meta-universe is Avatar within Teams.

How do you say this effect?

It seems to be similar to what Meta did.

The acquisition of Activision Blizzard, another Big Move into meta-universe, is now stuck by antitrust authorities in the United States and Britain.

At present, the acquisition will be difficult to complete at least in a short period of time.

In March this year, Microsoft announced that it would shut down its virtual social platform AltSpaceVR by March 10.

In Microsoft's mass layoffs, meta-cosmic social AltSpaceVR and HoloLens Touxian teams were hit hard, and a number of teams were disbanded in place.

It can be said that the Meta Universe project, which helped Microsoft reach the peak of market capitalization two years ago, has been very difficult to develop.

In OpenAI CEO Sam Altman's words, it depends on whether an industry is real or "bogus prosperity", and whether the first users can really indulge in related products and services.

At least the editor's own VR is useless for some time, but work and life are more and more inseparable from ChatGPT.

Meta relies on open source, and in the craze of Nvidia selling shovels, all the big companies are trying to get a piece of the pie.

Meta can make money from open source AI.

If other companies are free to use and profit from the new AI software that Meta is developing, then Meta will have an impact on more and more AI developers and enterprises.

It is reported that Meta is studying how to commercialize the next version of LLaMA, which can power chatbots such as ChatGPT.

The move may trigger a frenzy among AI developers, who are so eager to have a replacement for software sold by Google and OpenAI.

The recently released Falcon open source model in Abu Dhabi has attracted a lot of attention in the AI community. This has further advanced OpenAI's decision to commercialize LLM.

However, if Meta commercializes the next version of LLaMA, it may also face copyright disputes and legal liability.

There is another person who laughs happily, that is, Lao Huang.

Today, Nvidia's market capitalization can rise as much as AI startups lack of math.

Without Nvidia's A100, H100, GH200, big models and generative AI applications evolve very fast.

The influx of giants and startups has left GPU in short supply.

Mixpanel founder and CEO tweeted that he was willing to exchange 10% equity for $150 million worth of GPU computing power.

For investment institutions, having numeracy has become a ticket to invest in excellent AI companies.

Reference:

Https://www.reuters.com/technology/microsoft-shares-pace-notch-record-high-close-valuation-near-26-trillion-2023-06-15/

This article comes from the official account of Wechat: Xin Zhiyuan (ID:AI_era)

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