Microsoft's Bing GPT-4 offers 'rare opportunity for market share gains'
By Jon Swartz
'The release of GPT-4 only furthers the distance between OpenAI and their competitors,' analyst says
OpenAI's imminent release of a powerful AI model, GPT-4, could give its backer Microsoft Corp. even more of an edge in human-like technology over rival Alphabet Inc.'s Google, one Wall Street firm concluded Thursday.
"The release of GPT-4 only furthers the distance between OpenAI and their competitors," DA Davidson analyst William Jellison wrote in a note to clients.
"We expect to see benefit to the Bing business as it begins to take share from Google Search, then more importantly we expect generative AI volumes to drive upside to the important Azure business," Jellison said, reiterating a buy rating and $325 price target.
Also read: Microsoft adds AI tools to Office apps like Outlook, Word, Excel
On Tuesday, Google (GOOGL)(GOOGL) announced a "magic wand" for its collaboration software that can draft virtually any document. Microsoft MSFT is expected to showcase AI for its competing Word processor.
Shares of Alphabet rose more than 4% in trading Thursday, while Microsoft's stock climbed 4%.
-Jon Swartz
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 17, 2023 08:30 ET (12:30 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.