Expect to hear more about ChatGPT/OpenAI on the conference call from Microsoft Corporation (NASDAQ:MSFT) later on Tuesday.
This is according to Daniel Ives, the technology analyst at investment bank Wedbush.
Ives views the ChatGPT bet as a strategic step for chief executive Satya Nadella to double down on his artificial intelligence strategy as more use cases boost unprecedented demand for AI solutions with more use cases emerging.
While Bing holds a small share of the search engine market, Microsoft is still seeking to gain share vs. Google’s dominant position by offering more advanced search capabilities and language models that could take market share away from Google over time, Ives said in a preview to Microsoft’s Q4 call.
He also noted that the tech giant in the late 1990s, during its antitrust battle, slowed down its investing vision and ultimately that was one of the worst strategic mistakes ever made.
It meant missing out on key social and mobile trends that drove tech over the next few decades, the Wedbush number cruncher said.
Nadella is not going to repeat the same mistakes and Ives believes this strategic investment is a smart poker move in this AI arms race that is taking place globally, the analyst concluded.