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On the strength of its artificial intelligence assets, Microsoft has overtaken Apple to become the most valuable public company.
According to Bloomberg, Microsoft’s market cap ended the week at $2.88 trillion, while Apple’s was at $2.86 trillion. In the past year, Microsoft has added nearly $1 trillion in value, as fascination with generic AI (a major point of contention in Hollywood’s twin attacks) has grown.
Shares of Microsoft ended Friday trading at $388.47, up 1% and near all-time highs. Apple’s stock also remained within record territory, although it closed the day at just $185.92.
OpenAI, the creator of ChatGPT, is partly owned by Microsoft. The tech giant invested $10 billion in it last year, claiming a large share of the profits made by its for-profit arm. The market is in a frenzy over AI stocks, causing shares of chip maker Nvidia to triple in 2023 as the company was seen as an opportunity for investors willing to participate in the AI revolution.
In addition to its stake in ChatGPIT, Microsoft has built its own AI infrastructure and invested in the sector through its 7-year-old investment firm M12. “We were exploring uses of generative AI even before the whole thing blew up,” M12 partner Michael Stewart told Crunchbase News.
AI is seen on Wall Street as a way for Microsoft to close a long-standing gap with Google in search revenue. The former took in about $3.2 billion in search revenue in 2023, while the latter generated $43 billion in revenue.
Unlike Microsoft, Apple doesn’t have a fully developed presence in AI. Its shares have fallen about 4% in recent weeks on concerns about its fourth-quarter results and potential slowdown in its flagship iPhone, which accounts for more than half of the company’s revenue.