$MSFT up 11.11% on the Week as it Gains Upper Hand in AI Race With GPT-4

On Tuesday OpenAI announced the next generation of its artificial intelligence technology that is the foundation of its viral chat bot too, ChatGPT. According to the Microsoft backed company, “GPT-4 is a large multimodal model (accepting image and text inputs, emitting text outputs) that, while less capable than humans in many real-world scenarios, exhibits human-level performance on various professional and academic benchmarks.”

The more powerful GPT-4 promises to surpass previous iterations, potentially changing the way we use the internet to work, play and create. But it could also add to challenging questions around how AI tools can drastically change professions, enable students to cheat, and change our relationship with technology.

GPT-4 is a large language model that is trained on vast amounts of online data, to generate complex responses to user prompts in real time. It is currently available via a waiting list and has also now been coded into Microsoft’s new AI powered Bing search engine, among other third-party products.

The release of GPT-4 furthers the distance between OpenAI and their competitors like Google, who are working on an AI tool called “Magic Wand”.

GTP-4 is expected to benefit the Bing business as it begins to take more share from Google in the search market, then more crucially generative AI volumes are likely to drive upside to the newer Azure business.

On Tuesday, $GOOG announced a “magic wand” for its collaboration software that can draft virtually any document. Microsoft MSFT is expected to showcase AI for its competing Word processor.

Some interesting uses for GTP-4 identified by users are:

Easier software coding
Passing tests
Analyzing more than text (audio and images)
Improved responses
Streamlining work across industries

Share Price

The share price of $MSFT was up +11.11% on the week at the close of trading today, one of the single largest weekly gains in a long time.

$MSFT Weekly Chart (Source: Tradingview)

The technical setup on the daily chart has a long term target of around $360 and $480 but with the possibility of resistance reversing the gains at $285 and $345.