Microsoft surpasses $3-trillion valuation as AI investments boom
Microsoft briefly hit the $3 trillion mark worldwide on January 24th, becoming only the second in history to break the mark. Its current success is largely attributed to the rise of mainstream artificial intelligence (AI) technologies and the growth of the market following the launch of OpenAI's ChatGPT last year.
The Redmond Company is, as of this writing, the second most valuable company in the world. When Microsoft joined the three-trillion club, it trailed only Apple, which held the top spot at $3.03 trillion.
On the wings of artificial intelligence
The near-record-breaking performance comes as generative AI products and services continue to perform exceptionally well in both the consumer and enterprise markets.
Microsoft's $13-billion investment in OpenAI appears to be the driving force behind the company's rise. Not only has it reported record revenue in the past two quarters, but according to Forbes, analysts expect it to post another record high in sales during the next quarter's reporting period — a figure pegged at around $61 billion.
A rising tide among turbulent seas
As Microsoft and OpenAI enjoy the fruits of their labor, regulators in the US, UK and Europe are investigating whether the companies' partnership should be reclassified as a substantive merger. Fortunately, the Redmond company has recent experience in resolving contentious merger disputes after its two-year effort to acquire Activision-Blizzard-King was successfully completed in October 2023.
Related: Microsoft CEO calls OpenAI partnership ‘pro-competitive' amid UK, EU merger probes
Going by the rule, many of the top tech stocks of 2023 and 2024 were AI stocks. Navia posted records throughout the year and joined the trillion dollar club, while Meta and Apple posted all-time highs during the period. Meta recently crossed the trillion dollar mark, the first time since 2021.
Industry experts are still waiting to see what Apple will do next. Rumors continue to swirl that the Cupertino-based company plans to release major updates to Siri, iOS, and iPhone soon, but there's nothing official to report yet.
