In contrast, Apple, which lacks a fully developed presence in AI, has seen its shares drop by about 4% in recent weeks due to concerns about its Q4 results and potential weakness in its flagship iPhone. AI is seen by Wall Street as a way for Microsoft to narrow the gap with Google in search revenue. Microsoft's search revenue in 2023 was about $3.2 billion, compared to Google's $43 billion.
Key takeaways:
- Microsoft has surpassed Apple to become the most valuable public company, with a market value of $2.88 trillion, largely due to its investments in artificial intelligence.
- OpenAI, the maker of ChatGPT and partly owned by Microsoft, has contributed to the tech giant's success. Microsoft invested $10 billion in OpenAI last year.
- Microsoft's AI investments are seen as a way to close the gap with Google in search revenue. In 2023, Microsoft made about $3.2 billion in search revenue, compared to Google's $43 billion.
- Apple, in contrast to Microsoft, does not have a fully developed presence in AI and its shares have dropped about 4% in recent weeks due to concerns about its fourth-quarter results and potential softness in its flagship iPhone.