21st Nov 2023

Microsoft and the AI Overhaul: A Look Inside Tech's Latest Drama


In the world of artificial intelligence, two names often dominate the conversation: Microsoft and Nvidia. Microsoft has been in the spotlight due to owning a significant 49% stake in the AI powerhouse, OpenAI.

The Silicon Valley Stir:

Last Friday, an unexpected turn of events shook Silicon Valley. OpenAI's board of directors made a surprising move, dismissing the company's CEO and most prominent face, Sam Altman. Over the weekend, the tech world buzzed with speculation and discussions about the reasons and implications of this sudden change.

The Impact of Leadership Change:

Sam Altman, alongside his close associate Greg Brockman (who also departed from his roles as president and chairman in response to Altman's firing), are giants in the AI field. Their departure marked a pivotal moment for one of the most closely-watched startups. Rumors swirled about Altman's plans to launch a new venture, but as the dust settled, it became clear: Altman and Brockman would join forces with Microsoft.

Microsoft's Diverse Strengths:

Often celebrated for its AI prowess, Microsoft's strength extends far beyond this single domain. It's a powerhouse in various sectors, including gaming, hardware, and business services. Personal computing, primarily through Windows, accounts for just about 25% of the company's turnover.

An often-overlooked gem in Microsoft's crown is LinkedIn, a social network that has flourished under its umbrella. The importance of unrestricted access to a social network is evident in projects like xAI Grok and its live access to X (formerly Twitter).

Investment Perspective:

This development underscores Microsoft's agility and commitment to AI, championing CEO Satya Nadella's quick and decisive action. The company isn't just riding the AI wave – it's shaping it.

From an investor's lens, Microsoft is a tantalizing option.

According to dividend.watch, the stock ticks all the boxes in terms of dividend score. However, the question remains: Is the current all-time high the right moment to invest? With a current P/E ratio of 36, Microsoft stands pricier than other tech titans like Apple and Meta.

Microsoft's strategic moves in AI signal a new era in technology, driven by innovation and diversified strength. As the tech giant continues to make waves, investors and industry watchers alike are keen to see what's next in this exciting journey.

End Note: Keep an eye on Microsoft – a tech titan that's not just about AI, but about shaping the future of technology in multiple ways.

Report issue