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Now, listen up, ’cause something sweet’s about to go down. By regulating artificial intelligence, the US government has handed OpenAI, this sick AI start-up, exactly what they were begging for. And let me tell ya, this move has the potential to boost their valuation to a whopping $86 billion! The question is, can they scrape the ceiling amidst a fierce rivalry with some Big Tech giants, including one of their own investors? Shit, that could open up the door for a grand sale!
Hold on tight, ’cause it’s about to get real interesting. So, this year, Microsoft decides to extend its partnership with the ChatGPT chatbot creator. CEO Satya Nadella even goes on to describe it as a partnership built on a shared ambition. But here’s the twist, my friends—they’re also competitors! Yup, you heard it right. Microsoft has an exclusive deal as OpenAI’s cloud partner, which means their customers can get a taste of OpenAI’s badass tools through their platform!
Now, Microsoft ain’t playin’ around when it comes to offerings. They’re bringing the heat with Microsoft 365 Copilot, droppin’ this Wednesday! This bad boy offers AI assistance across all their products, like Word and Excel, for just 30 bucks a month per user. Now that’s a sweet deal, don’t ya think?
Now, if OpenAI hits that $86 billion mark, that’s like valuing them at a wild 66 times their reported annual revenue! I mean, shit, that’s a 196 percent leap since their last funding round. Meanwhile, Microsoft’s share price only went up by a measly 9 percent in the same period. Can ya believe that?
But hold up, Microsoft ain’t exactly broke. Even at this mind-blowing valuation, they can still afford to gobble up OpenAI. It’s only about 3 percent of Microsoft’s gigantic $2.5 trillion market cap, ya know? Plus, they got a fat stack of cash, cash equivalents, and short-term investments totaling almost $144 billion in the last quarter. Sure, a chunk of it’s set aside for that $75 billion Activision Blizzard deal, but Microsoft’s got the cash flow to make moves, baby!
Now, here’s where it gets real strategic. Thanks to their early investment and exclusive partnership, Microsoft’s already got a badass lead in the AI race. But if they acquire OpenAI, they can solidify their position and make sure they stay on top even when the partnership eventually comes to an end. But hold your horses, folks! Just ’cause Microsoft wants it, doesn’t mean OpenAI’s ready to sell. And let’s not forget about the regulators, who probably ain’t too keen on the idea either. ‘Cause if generative AI takes off, they gotta make sure there’s some fierce competition in the market, ya dig?
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